Chainlink Price Forecast: LINK/USD is in good shape as long as it stays above $7.00

Chainlink (LINK) hit $8.53 on Monday, which is the highest level on record, and retreated to $7.24 by the time of writing. The coin has lost over 6% in the recent 24 hours and slipped to the eleventh place in the global cryptocurrency market rating. Now the coins market value is registered at $2.53 billion, while an average daily trading volume is $1 billion. The coin is most actively traded on Binance against USDT and BTC. Coinbase Pro and Kraken offer LINK against USD.

LINK/USD: Technical picture

As we have previously reported, LINK retreated from grossly overbought levels. The downside momentum may gain traction in the short run, however, the future remains bright as kong as the price stays above $7.00.  A sustainable move above this level created a strong upside bias that brought the price to the new all-time highs; now it serves as strong support that is likely to attract new buyers. If it is broken, the sell-off may be extended towards  $6.63 (1-hour SMA100) and psychological $6.00 (1-hour SMA200 on approach).

On the upside, the initial resistance is created by the intraday high of $7.40, followed by $8.00, the recent high of $8.49. Once it is out of the way, the upside is likely to gain traction with the next focus on Monday's high of $8.49.  Above this area, the coin is mostly in uncharted territory with the next aim at $9.00 and potentially $10.00.

LINK/USD 1-hour chart