Chainlink Price Analysis: LINK/USD recovery capped by $7.5

Chainlink (LINK) topped at $8.89 on July 15 and has been in retreat ever since. The coin attempted a recovery on July 23, following major fundamental announcements, but the bullish momentum failed to gain the ground. At the time of writing, LINK/USD is changing hands at $7.36, having recovered from Monday's low of $6.52. 

Currently, Chainlink is the 12th largest digital asset with the market capitalization of $2.58 billion and an average daily trading volume of $882 million. The coin has gained 1.7% on a day-to-day basis and stayed unchanged since the beginning of the day.

LINK/USD: Technical picture

On the daily chart, LINK/USD slipped under the middle line of the daily Bollinger Band at $7.5. Now this area serves as a local resistance that needs to be taken out before the price can return to $8.10 and the recent recovery high of $8.87 reinforced by the upper line of the daily Bollinger Band. Once it is out of the way, the upside is likely to gain traction with the next focus on $9.00.

On the downside, the local support is created by $7.00 followed by the intraday low $6.92.  A sustainable move below this area will increase the downside pressure and push the price to the lower line of the daily Bollinger Band at $6.00 followed by 50-day SMA at $5.72.

LINK/USD daily chart