For those who want to venture further into the speculative world of crypto, LINK is one to watch after another pullback from near all-time highs.
Is Broken Resistance Now Support on Chainlink?
Today, we’re checking out Chainlink (LINK), which has been in a solid run higher since bottoming out just below the $24 handle at the end of March.
It recently made a swing high just above the $35 handle before today’s crypto dump, pushing LINK lower to a potential support area as we see a rising ‘lows’ pattern cross with the broken resistance area around $31.
For those who are unaware of what Chainlink is, it’s arguably the current leading blockchain oracle project…basically, a protocol to store and retrieve data between blockchains. The protocol is powered by the LINK token, and to learn more, you can check out the project at https://chain.link/
For traders who are short-term or long-term bullish on LINK, this may be an opportunity to buy at a price well below the all-time high traded at $36.92 back in early February.
Watch out for bullish reversal patterns at current levels, and given that cryptocurrencies tend to trade tightly with bitcoin and other cryptocurrencies, you may want to see bottoming patterns on those markets as well before considering a long position.If you’re short-term bearish on LINK, watch out for a break of both the strong area of interest around $31.00 and the rising ‘lows’ pattern. This may draw in momentum sellers, which could take LINK back to the $25.00 handle very quickly.
Also, it’s very important to remember that LINK volatility is relatively high with a current daily ATR of around $2.80, or around 8.9% of the current price.
So, risk management is a high priority here…or in other words, strongly consider having stops in place and absolutely don’t trade cryptocurrencies with capital that you are not willing to lose!
What do you all think? Are you watching LINK for a potential long-term buying opportunity? Or are you a crypto bear and think this could be the start of a move lower? Let me know in the comments section below!