Chainlink (LINK), one of crypto’s perennial star performers, is holding up pretty well in the wake of the COVID-economic-crisis (as I’m calling it), with no key support levels yet taken out. This is not to say that the crypto markets are in the clear yet, and there is still a little more room to the downside that LINK can take, if it needs it.
Starting on a clear 3-day LINK/Bitcoin chart, we see two important levels of support: the consolidation trendline, and the previous all-time-high region. As long as either of these generally hold (with diagonal trendline being the worse scenario), LINK will be well set up for whatever is coming in 2020.
If we zoom in a bit to the daily, we see very damaged indicators such that we might expect more downside. There are no divergences yet or typical reversal signs showing up yet, here.
Moving to the LINK/Dollar charts, we see a less-good performance but completely typical in this atmosphere. It would have been unreasonable to expect $3 to hold, but the bottom of this market is so far holding – with an uptrend even being mostly respected.
If LINK can maintain anything above $1.50, it will stay in the same universe. A promising HTF uptrend was destroyed, though, and a new HTF trend has yet to emerged in decimated crypto and traditional markets. Thus, we have to consider that $1.50 can be lost.
Finally, way down on the 4-hour LINK/Bitcoin chart, we see that things are perhaps looking up on the LTF. A bull divergence progression is joined by a persistence bullish histogram contraction.
If resistance here is broken, we may well see a pop out of this local bottom and relief rally, which is getting ever more likely.
Heady times in the crypto markets are going to test even historical winners like Chainlink. So far, it is holding up.
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