With yesterday’s hit to the cryptoasset markets, after Bitcoin (BTC) finally broke down from a months-long consolidation pattern, the altcoins have been almost universally trashed. Most of them have been falling against Bitcoin, which has translated to a double hit: down against Bitcoin, and way down against fiat.
One of the few altcoins that seems to be going against this trend is Chainlink (LINK), which has been one of the star-performing altcoins of 2019. Instead, it almost seems like LINK has acted as a safe haven asset during this crash, with heavy buying versus Bitcoin.
We start on the 4-hour LINK/BTC chart, and immediately see that the Bitcoin collapse translated into a LINK breakout from a bullish ascending triangle. This is in contrast to other altcoins — Litecoin (LTC) for example — whose promising charts and setups were wrecked by the Bitcoin move.
As far as the indicators go, the RSI looks strong with no bearish divergence from price highs. Based on the MACD/histogram, we do see that some correction here is likely back to the downside with lower highers on the histogram and an impending bearish cross on the MACD. A retest of the breakout area around 19,200 sats would be normal here.
On the daily, too, the indicators look promising. Higher volume spikes on the last two rallies off the lows indicate that buyers are excited about LINK. The RSI is shot well above the center of its range, with a clear upward momentum. We can look at the 56 level for a retest in the coming days.
The MACD/histogram is also singing, with the MACD about to cross back to the positive side on the daily. The histogram is seeing higher highs and smaller lows, and looks well set up for more gains.
Turning to the USD pairing, it is obvious that LINK was not able to avoid all losses on this chart: Bitcoin’s price drops affect the collective crypto market, and pull down fiat valuations of everything in that market.
But after all the fireworks of the past few days, LINK’s price has not fluctuated all that much even in USD terms. We see only about 6-7% price drop between now and a couple of days ago, which is significantly lower than Bitcoin’s own drop over the same period — and notably, better than almost all major altcoins.
We should remember this for the future. Chainlink has had some good news lately, and this may have contributed to the resilient price (although, “sell the news…”). But just per the charts, it is definitely worth keeping an eye on.
The views and opinions expressed here do not reflect those of CryptoGlobe.com and do not constitute financial advice. Always do your own research.
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