Sheldon McIntyre, CMT
Independent Analyst
- Chainlink price was unable to hold the lower trendline of a symmetrical triangle.
- LINK has been trading heavy over the last two days.
- The $25.70 support is critical for the bullish thesis in the short-term.
Chainlink price has had a difficult time trying to slice through the $31.50 resistance barrier over the past month. But the most recent rejection could have serious ramifications.
Chainlink price affected by magnet effect
After peaking at a high of $31.50 on March 9, Chainlink price took an 18% nosedive below the symmetrical triangle’s lower trendline at $27.60. LINK continues to trade below this crucial price hurdle on the 4-hour chart.
The magnet effect of the triangle’s lower trendline is keeping Chainlink price from plummeting. If the effect breaks, LINK will likely quickly drop to the March 5 low at $25.70. A lack of buying pressure around this level will leave the bears the opportunity to drive LINK down to the February low at $21.00.
Such a significant downswing would represent a nearly 24% correction from current prices.
LINK/USD 4-hour chart
Nonetheless, if LINK bulls can take command around $25.70 and push prices above the symmetrical triangle’s upper trendline, there is ample room to rally. Resistance would materialize at the all-time high at $37.00, followed by the topside trendline starting in June 2019 and passing through the August 2020 high.
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
Celebrity meme coins controversy continues amid Pump.fun revenue dominance
Pump.fun outperformed the Ethereum blockchain on Tuesday after raking in $1.99 million. Following this achievement, a meme coin based on actress Sydney Sweeney was the subject of controversy after its developers dumped their bags on investors.
PEPE's on-chain metrics indicate potential rally after weeks of silence
PEPE has struggled to see any significant price move after reaching an all-time high in May. Increased adoption rate and low MVRV ratio indicate a bullish run may be on the horizon. A single PEPE outflow from Binance worth $14.7 million gives credence to signs of bullish expectation.
Ethereum has failed to overcome key resistance despite bullish sentiment surrounding ETH ETF
Ethereum (ETH) is down more than 1.4% on Tuesday following another ETH sale from the Ethereum Foundation. Meanwhile, crypto exchange Gemini's recent report reveals that ETH ETF could see about $5 billion in net inflows within six months of launch.
Crypto community blasts Polkadot following report of treasury spending
Polkadot reports $87 million of treasury spending during H1. Crypto community members expressed harsh feelings toward the DOT team's high spending. DOT is up more than 2% in the past 24 hours but risks correction following the report.
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.