The central theses
- Chainlink’s future price (LINK) is defined by its ability to cut through a tight price pocket.
- If the cryptocurrency breaks the $ 29.70 resistance level, it could retest its previous all-time highs.
- If this support does not work, LINK will be greatly corrected.
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Chainlink is poised for a significant price move after seeing an 11% correction in the past three days.
Chain link prepared for volatility
4-hour charts suggest that LINK’s price action has been on an ascending parallel channel for the past two weeks.
Every time the price of LINK has risen towards the upper limit of this technical formation since February 25, it has been rejected and returns to the lower limit. At this point it tends to recover, which is consistent with the characteristics of a channel.
Chainlink is now at a crucial point after the recent pullback towards the channel’s support trendline. While the 50-hour moving averages of 50 and 200 at USD 29 do not seem to correct this cryptocurrency much, the 61.8% Fibonacci retracement at USD 29.70 looks strong.
Price action could be repeated
It can be assumed that the price development of the last two weeks will repeat itself. Under such circumstances, buy orders could rise, pushing Chainlink to the upper limit of the channel at $ 37.
Just a 4 hour candlestick above or below the $ 29.00-29.70 range will serve as confirmation of LINK’s next promotion.
LINK / USD on TradingView
If the resistance at USD 29.70 cannot be overcome, it could cause problems for Chainlink. Indeed, this could result in a surge in selling pressure below the USD 29 support level.
Such a downturn could cause panic selling and cause prices to return to the Fibonacci retracement level of 50% or 23.6%. These areas of interest are $ 25.80 and $ 23.70, respectively.
Disclosure: At the time of writing, this author owned Bitcoin and Ethereum.
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