This week, CoinMarketCap Academy breaks down the possible price movement of Chainlink (LINK) with some key levels to keep an eye on! Read more to find the important entry points.
Chainlink (LINK) has been relatively weak since the May dump. However, recently, LINK has caught the strongest bid in the market, with the price rising over 20% since the start of 2022. Chainlink is an essential part of the blockchain, and with the ‘LINK Marines’ constantly backing the project, could we see a rejuvenation in price to the upside? Let us dive into the charts and see.
LINK/USDT on a Daily Chart
After a month of consolidation at the lows, LINK got pumped. In fact, it was the leader of the market. Since this pump, the price has broken the medium timeframe downtrend it was in, forming a bullish market structure. The trend is always your friend in the market, so the fact that there is a bullish market structure on the daily chart is a good sign. The token seems to be selling off a bit here, however, this is following a BTC move down. There is no need to panic, as the price will likely see a bounce at $20. If the price closes below $19, it may indicate a move downward, potentially towards $16. For now, this is not something to consider.
LINK/USDT on a Weekly Chart
Although the price broke the bearish market structure in October, LINK, unfortunately, dropped back down and is now again in a downtrend. Anticipating a bounce at $22 is a good move as the price is in a demand zone, however, if the price breaks down from there, a 10% drop will likely occur. It is always good to see prices form a bullish structure on the higher time frames, not the lower ones. Therefore, for LINK bulls this isn’t the best situation.
LINK/USDT on a Monthly Chart
On the LINK monthly chart, there is a clear range between $29 and $16. Price has continuously been rejected above this level, so it is likely that the price revisits $16 at some point. Consequently, it seems unlikely that the price will break down below this level. There is significant support at $16, also being backed up by a demand zone around $11-$14. As can be seen in the form of the volume that is gradually decreasing. If it continues to happen, sellers will lose their interest at one point, allowing buyers to gain control in the market and push the price upward.
LINK/BTC on a Daily Chart
As you can see the price has broken out of the downtrend whilst also pushing through the trendline. Recently Bitcoin (BTC) has outperformed LINK, however, unless LINK breaks below 0.0004 sats, I can see LINK outperforming in the medium to long term. If LINK/BTC breaks below the current support at 0.000554, I would expect the price to be heavily defended for a bounce. This is because bulls are going to have to hold a revisit to the lows. A reclaim of 0.00057 would be ideal and set up the price to revisit the higher highs. It is better to wait for the lower high to form before buying.
LINK/BTC on a Weekly Chart
Although LINK has broken a clear lower high on the LINK/BTC weekly chart, it is clear that there will be some more downside before another move up into the supply zone. As can be seen above, the price has moved into the supply zone at 0.0007 and has been rejected. LINK bulls will possibly start to show up around the 0.00047 demand zone. This is a clear demand zone with plenty of areas of interest. As long as the price does not break below 0.00036, the bullish structure is intact and bulls will be able to outperform BTC and push LINK into the supply zone, hopefully flipping it.
Summarizing the Above
- Chainlink (LINK) has caught the majority of the cryptocurrency market's bids in the past few weeks, with prices rising over 20% since the start of 2022.
- LINK has broken the medium timeframe downtrend it was in on the daily. It, therefore, has formed a bullish market structure.
- On the LINK monthly chart, there is a clear range between $29 and $16. The price is currently at the midrange after being rejected from $29. It can therefore be inferred that it will move back down to test the $16 level.
- A reclaim of 0.00057 on the LINK/BTC daily chart would be ideal, potentially setting up the price to revisit the top of the higher high, maybe even moving up to resistance at 0.000754.
- The LINK/BTC price has tested the weekly supply zone at 0.0007 and been rejected, It is likely that LINK bulls will start to show up around the 0.00047 demand zone. The price needs to hold above 0.00036 to be considered bullish, with a break below signaling BTC dominance.
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