Lorenzo Stroe
Independent Analyst
- Chainlink price has formed an ascending broadening wedge pattern on the 12-hour chart.
- The digital asset faces robust resistance above and it’s on the verge of a breakdown.
- LINK bulls must defend a critical support level to avoid a huge crash.
Chainlink price has been trading in a weak 12-hour uptrend but is once again on the brink of a significant breakdown below a key support level.
Chainlink price at major risk of a crash
On the 12-hour chart, Chainlink has been trading inside an ascending broadening wedge pattern since December 24, 2020. Once again, the digital asset is on the verge of a breakdown below the key support trendline at $27.
LINK/USD 12-hour chart
Losing this key level will drive Chainlink price down by 40% towards a low of $16. This theory is reinforced by the In/Out of the Money Around Price (IOMAP) chart, which shows steep resistance above $28, but extremely weak support below in comparison.
LINK IOMAP chart
The most significant support area is located between $27 and $28, with 8.27 million LINK in volume. Again, a breakdown below this point will quickly drive Chainlink price towards a target of $16.
LINK/USD 12-hour chart
On the other hand, if LINK bulls can hold the key support level at $27 which coincides with the 50-SMA, the likelihood of a massive rebound towards the upper trendline will increase. The long-term price target for this would be about $48.
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
Polygon joins forces with WSPN to expand stablecoin adoption
WSPN, a stablecoin infrastructure company based in Singapore, has teamed up with Polygon Labs to make its stablecoin, WUSD, more useful in payment and decentralized finance.
Coinbase envisages listing of more meme coins amid regulatory optimism
Donald Trump's expected return to the White House creates excitement in the cryptocurrency sector, especially at Coinbase, the largest US-based crypto exchange. The platform is optimistic that the new administration will focus on regulatory clarity, which could lead to more token listings, including popular meme coins.
Cardano's ADA leaps to 2.5-year high of 90 cents as whale holdings exceed $12B
As Bitcoin (BTC) gets closer to the $100,000 mark for the first time — it crossed $99,000 earlier Friday — capital is rotating into alternative cryptocurrencies, creating a buzz in the broader crypto market.
Shiba Inu holders withdraw 1.67 trillion SHIB tokens from exchange
Shiba Inu trades slightly higher, around $0.000024, on Thursday after declining more than 5% the previous week. SHIB’s on-chain metrics project a bullish outlook as holders accumulate recent dips, and dormant wallets are on the move, all pointing to a recovery in the cards.
Bitcoin: Rally expected to continue as BTC nears $100K
Bitcoin (BTC) reached a new all-time high of $99,419, just inches away from the $100K milestone and has rallied over 9% so far this week. This bullish momentum was supported by the rising Bitcoin spot Exchange Traded Funds (ETF), which accounted for over $2.8 billion inflow until Thursday. BlackRock and Grayscale’s recent launch of the Bitcoin ETF options also fueled the rally this week.
Best Forex Brokers with Low Spreads
VERIFIED Low spreads are crucial for reducing trading costs. Explore top Forex brokers offering competitive spreads and high leverage. Compare options for EUR/USD, GBP/USD, USD/JPY, and Gold.