By now, ChainLink (LINK) seems secured as one of the market’s top mid-cap altcoins. 2019 was a bumper year for the oracle-powering crypto, and 2020 already looks bright for LINK with a solid uptrend obtaining throughout January. And on one chart, ChainLink is nibbling away at an important resistance area.
We go first to the LINK/BTC daily chart, and immediately see that the local market’s lid is just under 32k satoshis. Volume has swelled already in the new year, after a clear period of accumulation at a likely bottom. LINK’s outperformance of Bitcoin has translated, as we shall see, into impressive USD gains.
Two legs up have been support by building strength on both RSI and histogram highs. Volume did ebb on the second leg up slightly, however. Price has outpaced the EMAs here, and we could well see a pullback within a larger uptrend while they catch up.
On the USD pairing, we see an even more impressive run in 2020 on the 2-day chart, with nearly 65% worth of gains. The RSI here recently became overbought, making LINK a fairly risky buy in the short term. We see the same volume swell here, and the same outpaced EMAs.
We see that the zone surrounding $2.60, well supported during November of last year, stands a good chance of support any LINK pullback now. A healthy scenario – perhaps the ideal one – here would be a consolidation around that region with time for the EMAs to catch up to price. Another run here, without consolidation, would very quickly get overheated and threaten to sell off quickly.
Finally, if we take a really large view of ChainLink on the USD weekly chart, we can notice some interesting and promising features. First of all, LINK seems like it’s already broken out from a massive consolidation dating from mid-2019.
Its current resistance level is an area of very high historical volume. The interesting thing here is that there is very little price history above this point, and this translates into very little historical resistance. If price can break above into this “open air” zone, we could see LINK quickly achieve new all-time-highs.
But even if LINK is to continue higher, it may need to retest the breakout line. We will have to keep an eye on it in the coming weeks, but the prospects of a bullish 2020 for this altcoin are very enticing.
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