Chainlink (LINK) took a 50% drop from its November high. Is it on sale now, or is it going to drop more?
Covered:
- Chainlink And Its Volatility
- Chainlink Charts Analysis
- What To Expect From Here
LINK Forming a Higher Low Base Compared to Its July Low
Chainlink hasn’t made it easy for HODL’ers in 2021 with its violent swing back and forth, doubling its price along the way and then halving its price just a few weeks later, and vice versa.
But with volatility comes opportunities to find good entries for those who have patience to wait for the perfect moment.
LINK: Monthly
Because LINK is relatively new, it doesn’t have much data on its monthly chart.
The only important information here is that LINK’s monthly chart shows that the oracle is in an uptrend, and its momentum is rising to the bullish zone.
Weekly trend, however, is trending down. So from the trend following perspective, this wouldn’t qualify as a buy setup. However, it can make a case for an oversold reversal buy.
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The good news is that LINK is making a near-double bottom and holding above a cluster of support levels just below where it is trading at around $19.
There are some hurdles above, but it would look much better for buyers if LINK can get over this resistance zone.
On the daily chart, it shows a capitulation by sellers which usually leads to an oversold bounce.
There is a clear divergence between the momentum oscillator (rising) and daily price trend (falling).
Also, squeeze indicator suggests that bearish momentum is getting muted.
Since LINK is an underperformer compared to the overall crypto market, it is likely that LINK will follow the action of the overall market unless there is a catalyst waiting to happen for LINK.
It’d be important to note that LINK is a volatile crypto and having a plan will be important for this particular product.
Key Technical Levels:
- Support Zone: 17.6 – 19.6
- Resistance Zone: 22.8 – 29.6
- Important Intermediate Resistance: 37.87
If LINK can hold above 17.6
- Price Target 1: 44.6
- Price Target 2: 52.54
*Not financial advice.
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The post Chainlink: With Volatility Comes Good Entry Points, Says Tech Analyst appeared first on CryptosRus.
Chainlink: With Volatility Comes Good Entry Points, Says Tech Analyst
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