- Chainlink price has taken its wave-like motion the next step, having established another range higher.
- LINK could drop 10% before another leg up, providing entry for traders looking to buy the dip.
- A break and close below $18.86 would produce a lower low, initiating a possible trend change.
Chainlink (LINK) price is trading with a bullish bias, recording higher highs and higher lows since October when cryptocurrency markets turned bullish. The altcoin has provided one of the easiest trades since November, with a defined and predictable wave-like motion within a range. If history rhymes, LINK traders could have another chance to buy LINK at discounted rates.
Also Read: Chainlink’s large wallet holders pull $216 million worth of LINK out of exchanges, fuel gains
Chainlink price eyes 10% fall before next leg up
Chainlink (LINK) price is confronting resistance at $20.70 for the second time in February. The altcoin could suffer a rejection, potentially falling 10% to $18.12, and giving another buy opportunity around this level before the next leg up.
Notice the position of the Relative Strength Index (RSI), around the level where it has pulled south multiple times in the past. The Moving Average Convergence Divergence (MACD) indicator also has a bearish crossover in the line, pending execution once the orange band of the signal line crosses below the MACD, expected to provoke a trend reversal to the south.
Buy orders are likely accumulated around the $18.12, the 50-day Simple Moving Average (SMA) at $17.49, or for the overly confident traders, the $16.86 support level, which is a critical area marking the peak of the previous range-bound move.
LINK/USDT 1-day chart
On the flip side, if buying pressure increases, Chainlink price could extrapolate the gains. A break and close above the $20.87 range high would violate the pattern. To the south side, a break and close below $16.86 range bottom would produce a lower low, flipping the trend in favor of the downside.
Information on these pages contains forward-looking statements that involve risks and uncertainties. Markets and instruments profiled on this page are for informational purposes only and should not in any way come across as a recommendation to buy or sell in these assets. You should do your own thorough research before making any investment decisions. FXStreet does not in any way guarantee that this information is free from mistakes, errors, or material misstatements. It also does not guarantee that this information is of a timely nature. Investing in Open Markets involves a great deal of risk, including the loss of all or a portion of your investment, as well as emotional distress. All risks, losses and costs associated with investing, including total loss of principal, are your responsibility. The views and opinions expressed in this article are those of the authors and do not necessarily reflect the official policy or position of FXStreet nor its advertisers. The author will not be held responsible for information that is found at the end of links posted on this page.
If not otherwise explicitly mentioned in the body of the article, at the time of writing, the author has no position in any stock mentioned in this article and no business relationship with any company mentioned. The author has not received compensation for writing this article, other than from FXStreet.
FXStreet and the author do not provide personalized recommendations. The author makes no representations as to the accuracy, completeness, or suitability of this information. FXStreet and the author will not be liable for any errors, omissions or any losses, injuries or damages arising from this information and its display or use. Errors and omissions excepted.
The author and FXStreet are not registered investment advisors and nothing in this article is intended to be investment advice.
Recommended Content
Editors’ Picks
Ripple's XRP breaks out of downtrend as RLUSD receives greenlight from New York regulators
Ripple's CEO Brad Garlinghouse announced on Tuesday that the company received a green light from the New York Department of Financial Services on the launch of its stablecoin RLUSD.
Could Google's supercomputer crack Bitcoin? Crypto community maintains positive outlook
Bitcoin faced mixed sentiments on Tuesday after crypto community members spoke on the potential of Google's new quantum chip Willow's ability to crack blockchain networks and render the security of public key cryptography useless.
Crypto Today: Microsoft Rejects Bitcoin Reserve Plan, as Cardano, XRP Lead Market Rebound
Amid an escalating geopolitical crisis, the global crypto market crash on Monday saw over $1.5 billion worth of liquidations, triggering double-digit losses across top-ranked digital assets.
Litecoin Price Prediction: LTC to hold $100 support as traders deploy $10M of leverage
Litecoin price broke below the $110 level on Tuesday, down 20% in a frenetic 24 hours as rising geopolitical risks triggered volatility across global crypto markets.
Bitcoin: Long-awaited $100K milestone meets profit taking
Bitcoin ends the working week hovering around $98,000 after a very volatile Thursday when it surpassed the $100K milestone and underwent a sharp correction. Strong institutional demand, whale accumulation, and the choice of a pro-crypto figure to lead the US SEC fueled the rally this week.
Best Forex Brokers with Low Spreads
VERIFIED Low spreads are crucial for reducing trading costs. Explore top Forex brokers offering competitive spreads and high leverage. Compare options for EUR/USD, GBP/USD, USD/JPY, and Gold.