- Chainlink price strength puts bulls back on the bandwagon.
- LINK/BTC ratio shaping a bullish cup-with-handle pattern.
- IOMAP data reveals 74% of addresses are in the money, offering a firm source of support.
Chainlink price has rebounded to the descending channel’s upper trend line, wedging LINK into a corner just above the top of a price congestion range that began in February. Upside may be limited in the short-term as the altcoin consolidates in a tight range, but there is a high probability that the current situation will resolve to the upside.
Chainlink price bolstered by on-chain metric
A close look at the Intotheblock In/Out of the Money Around Price (IOMAP) data exposes a large number of in-the-money addresses beginning at $34.69 and extending down to $30.38, positioning LINK to withstand any short term selling pressure comfortably.
The 66.92k addresses owning 65.24 million LINK stands in contrast to the marginal amount of out-of-the-money addresses, putting Chainlink price in an optimal position to absorb some selling before quickly breaking through the descending channel’s upper trend line.
LINK IOMAP data
LINK/BTC price pattern points to a window of opportunity for Chainlink speculators
Relative strength is fundamental to generating alpha, and how a cryptocurrency trades against BTC reveals when those windows of outperformance may emerge. Currently, LINK/BTC is shaping the handle of a bullish cup-with-handle pattern on the daily chart. If the pattern resolves to the upside and based on the measured move target, LINK will outperform BTC by almost 50% in the coming weeks or months.
It is not a far-fetched outlook for LINK/BTC considering the breakneck speed of projects adopting LINK’s decentralized oracle network to provide input on various external sources of data.
LINK/BTC daily chart
Chainlink price at a pivotal threshold in the road to overcoming topside trendline
A quick review of the 12-hour chart below emphasizes the delicate position of LINK in the charts. The digital token has been forced into a corner by the upper range of price congestion and the channel’s upper trend line.
Using the on-chain metrics mentioned above combined with the chart’s technicals, it is possible to deliver a mildly bullish outlook for Chainlink price, but maybe after some consolidation.
Resistance begins at the channel’s upper trend line at $37.19, followed by the 261.8% Fibonacci extension of the August-September 2020 correction at $40.53. The significant resistance is at the topside trend line beginning in 2019 and running through 2020 high, and most recently, the February high. It currently sits at $46.30, just below the 161.8% extension of the February crash at $46.76.
LINK/USD 12-hour chart
With the IOMAP data showing broad support down to $30.38, LINK should not decline beyond the intersection of the 50% retracement of the February crash at $32.68, the channel’s midline at $32.06, and the 100 twelve-hour simple moving average (SMA) at $31.87.
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.