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Chainlink Price Analysis: LINK Price outperforms and sustains its bullish cycle

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  • Since the beginning of the year, the LINK cryptocurrency price increased by 830% and overtook BTC and other liquid coins by profitability
  • On the daily time frame, we can spot the token forming a prominent descending triangle pattern which broke out towards the upside at the start of this month

LINK has been acting pretty indecisive in the past few weeks, especially since it traded between a tight channel of $31.1-31.2 range yesterday. Although we did observe an upward breakout from the descending triangle pattern, it was followed by weakening volumes. This might suggest that upward momentum is not yet confirmed. The bulls are currently struggling to fight the resistance at $35.05. The 0.382 FIB extension is perfectly inclined with the price action at $32.19. We can infer from this that it is essential for LINK to hold above that extension and solidify as support. If it fails to maintain that support level, the token is most likely to fall back down and retest on the 0.236 FIB level at the $27.50 range. If the token goes beyond that level, we can conclude that this bullish breakout is most probably a fakeout. 

SUSTAINING ABOVE THE KEY RESISTANCE LINE WILL CONFIRM DOUBLE BOTTOM FORMATION 

LINK has also formed a double bottom formation on a macro level, which will only be confirmed once the price sustains above the critical resistance level of $32. 

However, the ADX moved flat over the last few sessions and showed a weekly trend. There have been signals of bearish divergence on a four-hour chart, which was confirmed once the price experienced higher highs, whereas the oscillators demonstrated otherwise. Nevertheless, there are no such signals in the daily time frame. 

Today, the price of LINK has been levitating above the key EMA levels, which in the short term are expected to act as strong support bars. The 20 EMA at $30.91 has been tested quite a lot of time in the past few days and has also served as resistance. The 50 EMA at 29.04 has been observed as a significant support level for the token. 

The RSI seems to be hanging tight at the 54 range, steadily making its way to the over bought zone. MACD appears to be bullish at the 1.17 range, indicating no crossover signs. 

CONCLUSION 

 Even though the token failed to overcome the $35 third time resistance in a row, the overall market sentiment is still pretty optimistic towards LINK. If the bulls successfully twist the overhead resistance at $35.05 as support, LINK can witness a substantial upward move and very easily break its ATH of 36.09. It is anticipated that LINK will reach the target of $40 by the end of April, irrespective of whether the crypto bull rally continues or not. LINK focuses on rectifying one of the major problems facing the blockchain sector, popularly known as the ‘oracle problems.’ LINK doesn’t strive for competition with other cryptocurrencies. Instead, it attempts to advance the entire industry through smart contracts and unique solutions. This is why investors have so much faith in this token. 

SUPPORT : $32.19 , $27.50 and $29.04

RESISTANCE : $36.09 and $35.05 

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