• Chainlink price building a cup-with-handle base on the four-hour chart.
  • LINK supported above the 200-day simple moving average (SMA).
  • Revolut, a leading contender to the classical financial system, is adding Chainlink to its platform.

Chainlink price clarifies price structure after navigating a period of duress in the cryptocurrency complex. The price compression generated by the V-shaped recovery from the May 23 low has slowly been released in the form of a cup-with-handle base. If the broader market cooperates, LINK may capture a 37% move from the handle high.

Revolut financial super app drives acceptance and adoption of cryptos

In a tweet yesterday, Revolut announced the addition of eight new popular cryptocurrency tokens on its platform. The new tokens include Polygon, Chainlink, Algorand, NKN, Cosmos, Band Protocol, Celo and Tellor. The tokens will be available for trading on the application.

The addition of the eight tokens marks an essential step for Revolut and the cryptocurrency market overall. Revolut’s users will have direct access to various digital assets to trade, boosting inflows into the cryptocurrency complex.

The increased transactions in the market will direct attention to the most preferred tokens and support the emerging ones. As the trend of active trading continues to grow, it will increase the market’s total capitalization.

Technologies like Revolut, a direct competitor to the classic financial system, bring a much-needed focus to the crypto ecosystem, facilitating the acceptance and adoption of digital assets like Chainlink.

Chainlink price near pivot levels with one eye still on the market

At the May 19 low, Chainlink price had collapsed 50%, slicing through the 50-day SMA and the 200-day SMA. A brief reaction did materialize from the area at the 200-day SMA, but LINK soon collapsed another 35% on May 23, shaking out the remaining weak holders and the dip-buying enthusiasts from May 19. The day ended with the largest volume for a negative day since July 13, 2020, and delivered the lowest daily Relative Strength Index (RSI) reading for LINK since the September 2020 correction.

The 136% rebound from the May 23 low positioned Chainlink price at the 50% retracement of the May decline at $33.99 and well above the strategically important 200-day SMA. Since the rebound high on May 27, LINK has quietly illustrated a cup-with-handle base highlighted by more robust volume on the right side of the cup and lower volume in the handle. The base has formed largely above the 50 four-hour SMA.

The measured move target of the LINK base is $44.77, equating to a 37% gain from the handle high of $32.65. Notable resistance levels include the 50% retracement of the May correction at $33.99, the 200 four-hour SMA at $37.13 and the 61.8% retracement at $38.47.

A Chainlink price rally to the target would fall short of the 78.6% retracement at $44.86 and well below the problematic June 2019 topside trend line currently at $51.25.

LINK/USD 4-hour chart

LINK/USD 4-hour chart

Chainlink price has not been released from the cup-with-handle today, making it extraordinarily important to consider the current support levels. A decline below the handle low at $29.01 would not alter the neutral-to-positive narrative, but a fall below the May 31 low at $27.40 will change the outlook. It could signal a more complicated handle is being composed or that LINK is entering a new stage in the bottoming process.

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.

Cryptos feed

Latest Crypto News

Latest Crypto News & Analysis

Editors’ Picks

Cardano introduces Layer 2 solution Hydra, as ADA price looks to rally 25%

Cardano price is grappling with a crucial support floor on the daily time frame as the big crypto experienced a minor crash. Investors can expect ADA to slice through this barrier before restarting its uptrend.

More Cardano news

Binance faces allegations of insider trading by US officials as regulatory clampdown continues

Binance continues to face regulatory scrutiny as US officials are looking into potential insider trading and market manipulation. Investigations are digging deeper into whether Binance or its staff ...

More Binance Coin news

Shiba Inu price consolidates as SHIB bulls prepare for 22% advance

Shiba Inu price rallied exponentially on September 16, slicing through plenty of resistance levels. However, the bullish momentum exhausted as it retested the August 16 swing high.

More Shiba Inu news

Bitcoin might be safe from a global stock market crisis

BTC’s lack of integration with traditional finance and its inability to be forcefully sold to cover financial losses mean the price might not ‘collapse’ if there is a global stock market meltdown. One of the reasons behind Bitcoin's (BTC) volatility, the substantial price oscillations ...

More Bitcoin news


Bitcoin Weekly Forecast: Markets revert to mean, but BTC price remains indecisive

Bitcoin price shows considerable strength after springing from the recent crashes. Still, it is uncertain whether the current bullish impulse will morph into a new uptrend or lead to a more profound decline.

Read the weekly forecast