• Chainlink price falls back inside the Ichimoku Cloud, giving buyers a cause for concern.
  • LINK has lost more than 14% from the weekly high to move below the weekly open.
  • The Weekly Ichimoku chart shows bearish conditions, but the Point and Figure chart hints at a solid upcoming rally.

Chainlink price is facing difficulties moving above a significant resistance zone on the weekly chart. Failure to close above this resistance on the weekly chart could trigger a strong resumption of falling prices.

Chainlink price has a decision to make – a return to $20 or a rally to $33

Chainlink price behavior and the overall trend for the remainder of January will likely be decided this Friday. On Chainlink’s weekly chart, the $25 level contains the 50% Fibonacci retracement, Tenkan-Sen, and Kijun-Sen. Bulls pushed LINK above the $25 level on Sunday, but the Thursday trading session saw LINK return below that critical zone.

Failure to stay above the $25 price level will likely trigger a fall to the bottom of the Cloud (Senkou Span A) at the $20 value area.

LINK/USDT Weekly Ichimoku Kinko Hyo chart

However, despite the near-term bearish price action, Chainlink price has nonetheless developed a rare and highly bullish trade setup on its $0.50/3-box reversal Point and Figure chart. That pattern is known as a bullish shakeout.

A hypothetical long setup for Chainlink price is a buy stop order at $26, a stop loss at $24.50, and a profit target at $34.50. This trade represents a 5.67:1 reward/risk with an implied profit target of 33% from the entry. A trailing stop of two or three boxes would help protect any implied profit made post entry.

LINK/USDT $0.50/3-box Reversal Point and Figure chart

The long entry idea would invalidate any near-term bearish bias based on resistance found on the weekly chart. The bullish scenario would be invalidated if Chainlink price falls to $23.50.


Note: All information on this page is subject to change. The use of this website constitutes acceptance of our user agreement. Please read our privacy policy and legal disclaimer. Opinions expressed at FXstreet.com are those of the individual authors and do not necessarily represent the opinion of FXstreet.com or its management. Risk Disclosure: Trading foreign exchange on margin carries a high level of risk, and may not be suitable for all investors. The high degree of leverage can work against you as well as for you. Before deciding to invest in foreign exchange you should carefully consider your investment objectives, level of experience, and risk appetite. The possibility exists that you could sustain a loss of some or all of your initial investment and therefore you should not invest money that you cannot afford to lose. You should be aware of all the risks associated with foreign exchange trading, and seek advice from an independent financial advisor if you have any doubts.

Cryptos feed Join Telegram

Recommended content

Recommended Content

Editors’ Picks

Binance Coin Price Prediction: CZ's Crypto Takeover

Binance Coin Price Prediction: CZ's Crypto Takeover

Binance CEO Changpeng Zhao (CZ) plans to hire 2,000 more Binance employees. 14 million tokens have been locked away and burned this summer. A break above $336 could be the catalyst to induce an additional 40-50% rally.

More Binance Coin news

Dogecoin: A $0.02 DOGE by 2023

Dogecoin: A $0.02 DOGE by 2023

Dogecoin price prediction shows reasons to be concerned. Analysts have been eyeing the notorious dog coin throughout the summer as the DOGE price fell into considerably discounted price territory at $0.050. Invalidation of the downtrend will result from a breach above $0.112.

More Dogecoin News

Shiba Inu on fire, another price rally around the corner?

Shiba Inu on fire, another price rally around the corner?

Shiba Inu, the second-largest meme coin, is closer to its breakout according to analysts. While declining trade volume and inflows to SHIB are typical of a bearish trend reversal, analysts remain bullish on SHIB. Analysts have predicted a recovery in Shiba Inu.

More Shiba Inu news

Is this the end of the road for Avalanche price?

Is this the end of the road for Avalanche price?

Avalanche price grinds to a halt, breaking a two-month trend within an ascending parallel channel. Despite breaking above $30.00, AVAX failed to close the gap to $40.00. Initially, higher support at $28.00 mitigated the bears’ influence on the price.

More Avalanche news

Bitcoin: If bulls lose control here, BTC could revisit $21,000

Bitcoin: If bulls lose control here, BTC could revisit $21,000

Bitcoin price shows an interesting setup that could reveal its next move. On closer inspection,  its technicals support a bearish outlook for the leading crypto.  

Read full analysis