We’re keeping it simple with today’s watchlist with textbook technical setups on Chainlink (LINK), Axie Infinity (AXS) and Cardano (ADA).
Will the price patterns be enough to get traders moving on these markets?
First up is the Chainlink token (LINK), the utility token of the Chainlink network, a platform that provides data to other blockchains and smart contracts.
LINK/USD just went on a solid rally higher from the $25 handle to roughly $34 in the past week, before falling with the rest of the crypto space in yesterday’s session.
That took LINK/USD back to the strong area of interest around the $28 handle, which held as resistance before breaking at the end of last week. It looks like this area has at least drawn in technical buyers as the pair seems to have formed bullish 4-hour candles in today’s session
With the down move apparently overdone according to stochastic, it looks like the bulls are back to buying into the uptrend at better prices. Is this the start of a new leg higher?
With a broad crypto market rally in the works and partnerships building across both the crypto and real world spaces (AP, Chainlink to bring trusted data onto leading blockchains), odds are fundamental traders will likely continue to support the token in the medium to longer-term.
Next up is the Axie Infinity Shard (AXS), the governance token for one of the more well known blockchain games, Axie Infinity, that rewards players with crypto assets for playing the game.
After a mega run up in September from $50 to a peak of $155 at the beginning of October, the token has been trading roughly between $120 – $140 over the past few weeks.
So, we’ve got a simple range setup in the works, and right now it looks like bulls may once again see some short-term gains as the market bounces off of that $120 support area.
It’s only another $12 to the top of the range, so bulls may want to see AXS/USD retest $120 handle one more time to make the potential reward-to-risk more attractive for a short-term trade.
Last up is Cardano (ADA), one of the largest crypto assets by market cap and once dubbed as an “Ethereum killer.”
The big story for this token was that the market for ADA could explode higher after smart contracts were added to the network in September, but since then, ADA has been nothing but a snoozer as price action tightened around the $2.15 handle.
We actually saw volatility pick up in yesterday’s session for ADA/USD, but not in a good way for Cardano bulls as the symmetrical triangle was broken to the downside, bottoming out around the $1.80 handle.
In today’s trade, ADA has bounced higher with the rest of the crypto space, but the question now is whether or not this is another opportunity for sellers to short at better prices or will longer-term bulls scoop up more ADA on this drop?
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