$7.65 & $6.82 are Two Strong Support Zones for ChainLink (LINK)

In brief:

• ChainLink (LINK) is in the midst of a pullback after an impressive run to a new all-time high of $8.92.
• Several areas provide adequate support for LINK including $7.65 and $6.82.
• Other areas of possible support include the February all-time high of $4.96 and the 50-day moving average. 
• It is not yet clear if the report by Zeus Capital halted LINK’s bullish momentum. 

The month of July has been an eventful one for the ChainLink (LINK) digital asset. LINK opened the month at a value of $4.65 which was a few cents shy of LINK’s previous all-time high value of $4.96. Since then, ChainLink has continued to provide gains for investors reaching a new all-time high of $8.92 – Binance rate – on the 15th of July. This is an increment of 91.8% in a two week period.

$7.65 & $6.82 are Two Strong Support Zones for ChainLink (LINK)

As with all parabolic moves by digital assets in the crypto markets, LINK is facing what seems to be a pullback. To get a clearer visual of the LINK situation in the crypto markets, the 6-hour chart courtesy of Tradingview is used to demonstrate the short term possibilities for LINK/USDT.

From the 6-hour LINK/USDT chart, the following can be observed.

• Trade volume has reduced and is in the red further confirming the pullback.
• MACD also indicates selling as the MFI is also in a downward trajectory.
• In terms of short term major support, LINK has $7.65 and $6.82 as areas of interest in the days to come.
• Other notable support zones are around $6.58, $5.70 and the February all-time high value of $4.96.
• The previous all-time high of $4.96 is also where the 50-day moving average lies and could provide an area of interest for a bounce by LINK.

Effects of the Report by Zeus Capital on LINK’s Bullishness

Two days ago, a report was published by Zeus Capital that labeled the ChainLink project as vaporware. However, the document has since been pulled off the web further providing fuel to the theory that it was published with malicious intent.

With LINK in the midst of a natural pull-back, there is no evidence that the report has had the desired effect on the digital asset.

One theory circulating on crypto twitter is that authors of the 60-page report probably placed short orders on LINK and leaked the report in an attempt to capitalize on the selling that would soon follow. The theory implicates another crypto project as orchestrating the authorship of the FUD loaded report.

I’m usually not retweeting drama but there are strong signs that @NEXO #NEXO is behind the Fake Chainlink Zeus FUD Paper and that they were the ones shorting LINK before that and I think that should shared. If it’s true, that would be absolutely ridiculous #Chainlink #LINK $LINK https://t.co/yf4oqphPFK

— Timo Harings (@timoharings) July 18, 2020