- Chainlink price is contained inside an ascending parallel channel on the 4-hour chart.
- The digital asset is at risk of a 10% breakdown if bulls cannot hold a key support level.
- LINK bulls are hopeful as there is weak resistance ahead of the current price.
Chainlink has been trading inside an uptrend for the past two weeks but could be on the verge of a significant 10% correction. Nonetheless, LINK bulls remain in control over the short term.
Chainlink price must defend key support level
On the 4-hour chart, Chainlink has formed an ascending parallel channel that can be drawn connecting the higher highs and higher lows with two parallel trend lines. The lower boundary of the channel is set at $32 at the time of writing.
LINK/USD 4-hour chart
A breakdown below $32 will quickly push the Chainlink price down to $30.5 and toward $28.8 eventually. This price target is calculated by measuring the height of the parallel channel. However, bulls remain in control over the short term as long as they can hold this critical support level.
LINK IOMAP chart
The In/Out of the Money Around Price (IOMAP) chart shows only one significant resistance level between $32.20 and $32.68 where 2,890 addresses purchased 12 million LINK. A breakout above this area should quickly drive the Chainlink price toward the middle trend line of the pattern at $34.4 and $36.4 in the longer term.
The IOMAP model adds credence to the bearish price targets above as it shows a large concentration of buyers between $28.3 and $30.2, which coincide with both targets. This area will absorb a lot of selling pressure, which is why a correction will most likely not go any deeper.
Note: All information on this page is subject to change. The use of this website constitutes acceptance of our user agreement. Please read our privacy policy and legal disclaimer. Opinions expressed at FXstreet.com are those of the individual authors and do not necessarily represent the opinion of FXstreet.com or its management. Risk Disclosure: Trading foreign exchange on margin carries a high level of risk, and may not be suitable for all investors. The high degree of leverage can work against you as well as for you. Before deciding to invest in foreign exchange you should carefully consider your investment objectives, level of experience, and risk appetite. The possibility exists that you could sustain a loss of some or all of your initial investment and therefore you should not invest money that you cannot afford to lose. You should be aware of all the risks associated with foreign exchange trading, and seek advice from an independent financial advisor if you have any doubts.
Recommended Content
Editors’ Picks
Ripple on-chain metrics show bullish signs amidst legal struggle with SEC, XRP eyes recovery
Ripple made a comeback above $0.48 on Tuesday and hovers above that level in Wednesday’s European session. Ripple on-chain metrics such as transaction volume and Network Realized Profit/Loss have turned bullish, supporting a recovery in the altcoin.
Bitcoin price falls amidst German government transfers, miners activity
Bitcoin (BTC) extends correction on Wednesday and hovers around $61,000 after finding resistance near the $64,000 level on Monday. Recent on-chain data indicates heightened selling activity from Bitcoin miners early in the week.
Crypto Today: Bitcoin erases gains from end of June, Ethereum declines while Ripple holds
Bitcoin wipes out gains from the last week of June and falls below $60,000 on Wednesday. Ethereum and top altcoins ranked by market capitalization erased gains as the inflation outlook worsened. Ripple holds on to recent gains and hovers above $0.48 on Wednesday.
Three reasons why altcoins could shake off losses this week
On-chain data from Santiment shows that altcoins are currently in the opportunity zone, or generating buy signals. The top three altcoins in the buy zone are Basic Attention Token (BAT), Chromia (CHR), and Highstreet (HIGH), per Santiment.
Bitcoin: BTC price correction could end in July, according to seasonal data
Bitcoin (BTC) price appears poised for a decline this week, influenced by slight outflows in US spot ETFs, selling activity among BTC miners, and a combined transfer of 4,690.28 BTC to centralized exchanges by the US and German governments.