Perhaps it should be no surprise at this point, but Chainlink (LINK) has again proved that it is the exception in 2020. The altcoin has heavily outperformed everything else in the market, from the mid-caps up to Bitcoin (BTC); and if it can continue to hold some key levels even within the current market atmosphere, it will continue to look decent for 2020 in spite of everything else.
We start on the 3-day LINK/Dollar chart, and we see that the altcoin was in fact largely rejected again from the general region of its previous all-time-high (ATH) on Binance (although it did technically set several new ones). However, the crypto has held extremely well up in this general area, and seems to be building a base of support in this area.
The key indicator to watch here is the RSI. On this chart, we can see a clearly significant inflection line running through the indicator’s history. If this breaks down, we can probably expect a breakdown in price all the way to about $3; and the thesis of this high base of support invalidated.
Turning to the daily LINK/Bitcoin chart, we see a similar – but better – situation, with LINK in a trading range between the previous and current ATHs. Price has in fact risen in the past couple of days, precisely when the rest of the crypto market tanked. This means that LINK is trading favorably against the crypto market and Bitcoin in particular; a safe haven from the ‘safe haven’.
The histogram here is looking good as well, arching up and looking like it wants to continue a bullish expansion. Consolidation in this blue zone would be ideal, and would be the best place to wait out any downturn in crypto.
Finally, on a 3-hour USDT chart, we first of all see the swell of buying that has come in to keep this crypto above $4. We’re seeing a small uptrend, in fact, but this may not hold for long: the local chart looks suspiciously like a head and shoulders formation, as we approach local resistance at $4.30.
But the indicators suggest otherwise, with a bullish histogram crossover and RSI bullish divergence driving the local market. Getting above $4.30, and consolidation up there, would be really ideal.
LINK is not to be trifled with, it seems, holding its own when pretty much everything else on the market is collapsing.
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