- The future price of Chainlink (LINK) will be defined by its ability to slice through a narrow price pocket.
- Moving past the $29.70 resistance level could see the cryptocurrency retest its previous all-time highs.
- If this support fails to hold, LINK will face a steep correction.
Share this article
Chainlink is primed for a significant price movement after enduring an 11% correction in the last three days.
Chainlink Primed for Volatility
4-hour charts suggest that LINK’s price action has been contained within an ascending parallel channel over the past two weeks.
Each time the price of LINK has risen towards this technical formation’s upper boundary since February 25, it has been rejected and retraces to the lower edge. From this point, it tends to rebound, consistent with a channel’s characteristics.
Chainlink now sits at a pivotal point following the recent pullback towards the channel’s support trendline. While the 50 and 200 four-hour moving averages at $29 seem to be preventing this cryptocurrency from a steep correction, the 61.8% Fibonacci retracement at $29.70 is acting a strong resistance.
Price Action Could Repeat
It is reasonable to assume that the price action seen over the last two weeks will repeat. Under such circumstances, buying orders might increase, pushing Chainlink to the channel’s upper boundary at $37.
Only a 4-hour candlestick close above or below the $29.00-$29.70 range will serve as confirmation of LINK’s next action.
A failure to overcome the $29.70 resistance could spell trouble for Chainlink. Indeed, it could lead to an increase in selling pressure that sends it below the $29 support level.
Such a downswing could provoke panic selling, causing prices to retrace towards the 50% or 23.6% Fibonacci retracement level. These interest areas sit at $25.80 and $23.70, respectively.
Disclosure: At the time of writing, this author owned Bitcoin and Ethereum.
Bitcoin Lending Platform BlockFi Raises $350 Million
Crypto lending firm BlockFi has raised $350 million in Series D investment, with a valuation of $3 billion. BlockFi Promoting Crypto Finance Centralized lending platform BlockFi has raised $350 million…
Bitcoin Exchange BTSE Lands Fresh Funding at $400 Million Valuation
Cryptocurrency exchange BTSE has raised $22 million in its series A investment round at a valuation of $400 million. BTSE to Build a “Digital Bank” The latest series A funding…
Looking Back on 2020 and 2021 Predictions
Happy New Year from all of us at Crypto.com Research! 2020 was an unprecedented year for the world and for crypto. Before we fully plunge into 2021 predictions, we will…
SEC Receives Application for Balanced Equity-Bitcoin ETF
An ETF issuer in the U.S. has introduced an equities portfolio with a 15% allocation in Grayscale’s Bitcoin Trust shares. Balanced Bitcoin ETF U.S.-based financial services firm Simplify seeks to…