fxs_header_sponsor_anchor

Chainlink price dives by 30%, but the bulls bought the dip and aim for a recovery

  • Chainlink price plummeted after a breakdown from the ascending parallel channel on the 12-hour chart.
  • Bulls managed to buy the dip and push LINK back up.

Chainlink has been trading inside an ascending parallel channel for close to three months before finally seeing a massive 30% breakdown which was fairly close to the price target that we suggested in our last analysis.

Chainlink price in recovery mode, but can the bulls sustain the rebound? 

After a breakdown below $12, Chainlink plummeted down to $8.05 before quickly bouncing back up within 24 hours hitting $11.88. Several days later, the digital asset formed a higher low at $10.47 and a higher high at $13.24 confirming an uptrend on the 12-hour chart.

LINK/USD 12-hour chart

Now, bulls need to recover the 50-SMA and the 100-SMA levels and turn them into support points. A breakout above $12.8 can quickly drive Chainlink price towards the high of $14.5 set on December 17. 

LINK IOMAP chart

The In/Out of the Money Around Price (IOMAP) chart seems to confirm this theory as it shows the strongest resistance area to be located between $12.36 and $12.73 and very little resistance above. 

However, the IOMAP also shows very little support in comparison to the resistance above giving the bears the upper hand. A breakdown below $10.47 can push Chainlink price towards the last low at $8.05.

Information on these pages contains forward-looking statements that involve risks and uncertainties. Markets and instruments profiled on this page are for informational purposes only and should not in any way come across as a recommendation to buy or sell in these assets. You should do your own thorough research before making any investment decisions. FXStreet does not in any way guarantee that this information is free from mistakes, errors, or material misstatements. It also does not guarantee that this information is of a timely nature. Investing in Open Markets involves a great deal of risk, including the loss of all or a portion of your investment, as well as emotional distress. All risks, losses and costs associated with investing, including total loss of principal, are your responsibility. The views and opinions expressed in this article are those of the authors and do not necessarily reflect the official policy or position of FXStreet nor its advertisers.


RELATED CONTENT

Loading ...



Copyright © 2024 FOREXSTREET S.L., All rights reserved.