ChainLink Tests Key Support, Set to Fly With Another Push — Price Analysis

  • Short term trend: Up after bouncing off trendline/support
  • Medium term trend: Down after cooling from last run up
  • Long term trend: A strong uptrend has broken a key trendline

ChainLink (LINK) is dutifully building a new base above a key trendline, after breaking through it a few days ago. There is not much anymore standing between this top altcoin and new all-time-highs.

We head first to the LINK/BTC 4-hour chart, and see that ChainLink has predictably found support just in the key inflection zone, and is currently seeing a slight surge in price.

Predictable bounceLINK chart by TradingView

It is too early to say if this movement will have legs and continue up; but one way or another, we should see a test of either the top or bottom of the current structure within a few days. When that happens, we should be able to judge the strength of either a double top or bottom and anticipate a larger trend.

If we head to the daily LINK/Dollar chart, we see something interesting. ChainLink recently broke clean and clear out of the downtrending resistance line drawn from the last two price highs, pictured below.

VERY interesting...LINK chart by TradingView

Since then, the altcoin has retested the breakout line, and so far we see an almost perfectly successful retest scenario. Buyers came in to push the price back over the line just as soon as it crossed under. If this retest holds, we could see LINK head up and away from the previous structure; likewise, falling back into it would probably cause a rapid selloff.

We can note here that the histogram is still hurtling toward the ground, although the current bar is cooling off a bit and decelerating its arch. The EMAs could use a bit more time to catch up, at any rate.

This can now happen - not much in the wayLINK chart by TradingView

The larger stakes in this contest at LINK’s local top were detailed a few days ago, and the same consequences still apply. If ChainLink can break out of this structure, there is very little price history standing in the way of new all-time-highs.

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