Chainlink outperforms while broader markets route, LINK targets a return to $35
- Chainlink price rebuffs all selling attempts and pushes forward.
- Critical breakout zone ahead could trigger a 25% rally.
- Near-term resistance threatens the recent rally, but bears have not shown strength.
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Chainlink price action continues to outshine all other major cryptocurrencies. With Bitcoin, Ethereum, and other major market cap cryptocurrencies suffering intraday losses over 5 to 6%, Chainlink has been the single outlier with bullish momentum.
Chainlink price faces resistance at $30
Chainlink price has been halted near the $29 to $30 value area for the past two days. Despite a bullish close above the Cloud and the fulfillment of an Ideal Bullish Ichimoku Breakout setup on the daily chart, the weekly Ichimoku chart shows why buyers see difficulty in a move above the $30 range.
The weekly Senkou Span A, Senkou Span B, and 61.8% Fibonacci retracement share the $30 value area. Those three price levels create near-term resistance preventing Chainlink price from moving higher. However, there is a Kumo Twist that occurs next week. Kumo Twists are often referenced as time cycles that can create significant major/minor swing highs and lows. However, they also represent the weakest point of a Cloud.
LINK/USDT Weekly Ichimoku Chart
When price action moves through a Kumo Twist, the resulting behavior is often dramatic. It’s almost as if Kumo Twists act as a kind of accelerant or boost for price. That means that for Chainlink price, the expected behavior for price would be a robust launch higher. If bulls can perform a daily or weekly close at the $29 level, that will likely generate enough momentum to propel Chainlink price to the $35 value area.
Author
Jonathan Morgan
Independent Analyst
Jonathan has been working as an Independent future, forex, and cryptocurrency trader and analyst for 8 years. He also has been writing for the past 5 years.
