ChainLink (LINK), for the past couple of years one of crypto’s star altcoins, broke new ground last week by setting new all-time-highs (ATH) on both its charts, during the early 2020 bull run. That run is now correcting, and we now consider the scope of a LINK pullback and what it means going forward.
Starting on a weekly LINK/Bitcoin chart, we see that the new ATH has been kicked up to ₿0.000487 from about 4 even. The latter level will now form the most obvious candidate for a retest and consolidation zone.
We can see that a selloff has already almost tested that point, and if the market turns generally bearish on the medium timeframes (as it is threatening to do) we can imagine this will be a good place for consolidation as well. The RSI is certainly demanding a pullback, being completely overbought.
If we look at a daily LINK/Dollar chart, we first of all see that a new ATH was also set on this chart. This ATH however, unlike on the previous chart, didn’t stick and was quickly sold off on a daily wick. But it is still a big deal, and LINK is almost certainly going to be bullish throughout 2020 because of it.
We will test exactly how bullish it will be, with the retracement that is likely to come on extremely overbought conditions. We see that LINK was already quickly bought up at the .382 retracement level; and if the altcoin really is super-bullish as the situation would suggest, we should see a consolidation not below that level. We also see a confluence between this area and a previous resistance level.
The ChainLink HTF uptrend is quite likely to continue, given what’s already under its belt. LINK is in a state of “price discovery” on both charts, where almost no price history exists before. If a base can be built here, there is no limit to the upside.
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