ChainLink Begins Its Correction, But Is the Rally Over? - Price Analysis

  • Short term: some downside is likely here
  • Long term: a continuation of the uptrend looks possible, but support must be found

It’s no secret, ChainLink (LINK) has been burning a path through the altcoin markets, as it has done throughout 2019. But now, after a breakneck rally from September’s lows, LINK has been rejected at previous highs -- a very predictable reaction given the rally’s intensity. Now we consider where a retrace might land, and if the rally might have more steam.

Starting on a daily LINK/BTC chart, we see the correction that has begun at around 36,000 sats. LINK was very overbought, and it was no surprise to see selling at these levels, which comprised the previous upper limits of the chart.

Possible retrace targetsLINK chart by TradingView

One of the obvious questions here is: where might the retrace land? The first stop is at 28k sats, and if price is actually held here it will be a very bullish result. However, more likely -- or at least a safer bet -- is a retest of the main breakout point around 24k sats, where there are multiple historical responses.

But of course, there is no guarantee that a longer term uptrend will continue. To try to figure this out, we can look at a 12-hour LINK/BTC chart with indicators. We must note that, during the entire rally from mid-September, there was no flagging in any of the indicators: RSI was straight higher highs and lower lows, and same with the histogram. Volume also kept up, with a steady glob of buying since the 6th.

No negative signs on this chartLINK chart by TradingView

Only the obviousness of the extremely overbought conditions, within a zone of clear resistance, was enough to break this strong ChainLink rally.

Finally, looking at a weekly chart with EMA fan, we must note that the fan has resumed spreading out in a completely bullish configuration (with the smallest EMA on top). It takes a long time to move anything on a weekly chart, and the recovery of the fan -- which briefly started to collapse -- could signal a serious long term strength for this popular altcoin.

EMA fan is cooking againLINK chart by TradingView

We will have to watch the intensity of the retrace, and use that information to judge whether or not we can get another huge leg up with ChainLink. For now, though, it would be quite unwise to buy.

The views and opinions expressed here do not reflect those of CryptoGlobe.com and do not constitute financial advice. Always do your own research.

Featured Image Credit: Photo via Pixabay.com

Rapper Akon Gets Approval for Crypto City in Senegal

Michael LaVere
  • Rapper Akon says he has reached an agreement with Senegal officials to build Akon City.
  • Akon City will run on 100% renewable energy and have an economy built around the cryptocurrency Akoin.

Rapper Akon has finalized an agreement to build a cryptocurrency-fueled city in Senegal. 

The imagined new city, named Akon City, is being planned from the ground up on an economy that utilizes the cryptocurrency Akoin. According to a tweet, the rapper had received a green light from Senegal officials to move forward on the project.

In addition to cryptocurrency, Akon City will reportedly be the first city to run entirely on renewable energy, with the rapper envisioning it as a real-life version of the fictional nation Wakanda from Marvel’s Black Panther series. Akon was gifted the 2,000-acre piece of land in 2018 by Senegalese president Macky Sall. 

According to the official roadmap for Akoin, the cryptocurrency is expected to launch and be listed on exchanges in the first half of 2020, despite not yet having a white paper. Akoin is being billed as a “unique” ecosystem to bring together digital and real-life tools and services. The project is placing an emphasis on supporting the efforts of African entrepreneurs. 

Featured Image Credit: Photo via Pixabay.com