Chainlink is currently down almost 55% from all-time highs, but has traded in a parallel channel since April of 2018.
LINK is trading a critical support levels that historically indicate a future uptrend.
LINK must maintain critical support above $17 on the lower boundary of the parallel channel to validate the bullish thesis.
Share this article
Chainlink appears to be trading at a crucial support level that has previously marked the beginning of a bull run. If history repeats itself, LINK could rise towards new record highs.
Chainlink Reaches Local Bottom
Chainlink appears ready to kick off 2022 on the right foot.
Although LINK is down nearly 55% from an all-time high of about $53 in May 2021, it appears to be holding above a crucial area of support. The lower trendline of a parallel channel, where the token has been contained since April 2018, could serve as a rebound point.
Every time Chainlink has dropped to this technical formation’s lower boundary since then, the downtrend has reached exhaustion before prices move back to the pattern’s middle or upper edge. From this point, LINK usually gets rejected, which is consistent with the characteristics of a parallel channel.
Similar price action to the past four years could see Chainlink rise to the channel’s middle trendline at $67 or even the upper trendline at $180.
The Relative Strength Index is currently hovering around 48, adding credence to the optimistic outlook. This indicator usually remains in the 40-90 range with the 40-50 zone acting as significant support in an uptrend.
The RSI’s recent rebound from the 42 level suggests that Chainlink continues in a bull market and has more legs to go up.
It is worth paying attention to the parallel’s channel lower boundary at $17 and the RSI’s 42 support. Any decisive break among these crucial areas of interest could invalidate the bullish thesis and result in a steep correction. Under such circumstances, Chainlink might dive towards the 200-week moving average at $10.
Disclosure: At the time of writing, the author of this piece owned BTC and ETH.
Share this article
The information on or accessed through this website is obtained from independent sources we believe to be accurate and reliable, but Decentral Media, Inc. makes no representation or warranty as to the timeliness, completeness, or accuracy of any information on or accessed through this website. Decentral Media, Inc. is not an investment advisor. We do not give personalized investment advice or other financial advice. The information on this website is subject to change without notice. Some or all of the information on this website may become outdated, or it may be or become incomplete or inaccurate. We may, but are not obligated to, update any outdated, incomplete, or inaccurate information.
You should never make an investment decision on an ICO, IEO, or other investment based on the information on this website, and you should never interpret or otherwise rely on any of the information on this website as investment advice. We strongly recommend that you consult a licensed investment advisor or other qualified financial professional if you are seeking investment advice on an ICO, IEO, or other investment. We do not accept compensation in any form for analyzing or reporting on any ICO, IEO, cryptocurrency, currency, tokenized sales, securities, or commodities.
See full terms and conditions.
“Hybrid Smart Contracts” Will Change DeFi and the World, S…
In a recent interview at BlockDown 2021, the co-founder of Chainlink detailed how the current macro environment is bound for a steep crash akin to the 2008 financial crisis. At…
After Reaching All-Time Highs, Chainlink Poised for Fresh Losses
After reaching new all-time highs, Chainlink’s native LINK token recently suffered a significant pullback. Now, according to different metrics, the mooning token looks like it will continue dropping. Chainlink Rises…
Web3 – What it is, What it Means, and How We’ll Transition
We are at the dawn of a new era of the internet. Bit by bit, this new digital world, and all that it enables, will slowly become a part of…
Alpha Finance Turns to Chainlink, Band for Oracle Solutions
DeFi Staple Alpha Finance is bringing together price feeds from multiple sources. Alpha Finance Merges Price Feeds Alpha Finance is launching the Alpha Oracle Aggregator to pull in price feeds…