We recently covered ChainLink’s (LINK) exceptional potential to move up during 2020, if certain conditions were met. This is due to the lack of a significant amount of price history just above the current prices, translating to relatively little resistance between the current price and the altcoin’s historic highs. Since then, LINK has gone on to paint a perfectly bullish picture, and is so far fulfilling all of those aspirations.
We first look at a 3-day LINK/Dollar (Tether) pairing, and see that LINK has broken clean out of its huge consolidation structure drawn from mid-2019. It has perfectly retested the downtrending support of that structure, and has now resumed its medium trend uptrend.
The upshot here is that a new HTF uptrend has likely begun. There is only one major resistance zone left on this chart, surrounding $3.
If we come down to the daily chart, we see in greater detail the perfect retest of the breakout zone, and that LINK is now entering the resistance zone on building volume and strong indicators: the histogram is pointing up in an accelerating bullish expansion, and the RSI is moving up again after cooling off from overbought conditions.
Notably, the RSI has some room for a leg up before re-entering overbought conditions. There is no reason for LINK not to start carving through the resistance zone.
Turning to a 3-day LINK/Bitcoin pairing, we see that ChainLink has been processing through a vague consolidation period – also from July 2019 – versus the USDT pairing; but here, instead, the consolidation has not yet broken one way or the other.
Overall, the trend here has been up, and it seems anecdotal that a breaking move will come on this chart within the next few months. But, insofar as this chart pertains to the LINK/USDT chart, there is plenty of upside room even within the structure to accommodate a move up there, through the resistance discussed above.
In this chartist’s opinion, LINK looks very bullish for 2020, and is already delivering as we roll into February.
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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