Chainlink (LINK) has set new all-time-highs (ATH) on both its charts, and we now consider the scope of those gains and if they can be held.
Starting on the daily LINK/Tether chart, we can see that Chainlink has – technically – set yet another new ATH yesterday, although it didn’t close at that level on the daily. However, a more manageable accomplishment would be to maintain a position above the previous (from several months ago) high at $4.58 on the Binance chart.
The indicators are mixed, with a nasty bear divergence threatening on the RSI. But the top is clearly not yet in here, and so this divergence remains a divergence only in potential. The histogram has just crossed bullish with a strong trajectory, so we might anticipate another run to really secure the new ATH on the dollar pairing.
Moving to the daily LINK/Bitcoin chart, things look a bit less ambiguous: we should definitely expect some selling from the (much clearer) new ATH, with the histogram rolling over and volume ebbing with price rise.
We see a very clear bear divergence forming on the RSI. The cautious thing to do here would be to wait for some selling and consolidation, ideally around the previous ATH to confirm it as a base.
However, this is all short- to medium-term thinking. In the longer term, we must acknowledge that LINK has entered “price discovery”, the trading equivalent of uncharted territory. There are no prior resistance levels – on either chart! – to stop any new move up, but rather only supports.
If LINK does continue rocketing up from here, it actually would be less than ideal for the long term. It would be healthier to build a base of support around here and let the moving averages catch up, which are now dangerously extended from price
Overall, Chainlink still looks excellent for 2020. These new ATHs being set are not happening in a parabolic mania-market like we saw in 2017; in fact, there is far less apparent interest in crypto markets now versus then. Instead, LINK is taking its powerful uptrend step by step; and at this moment, it needs to defend what it has taken already.
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