Chainlink Ready For a Break After Massive Uptrend — Price Analysis

  • LTF (Low timeframe) trend: Time for some profit taking and a downtrend
  • MTF trend: An uptrend seems likely
  • HTF trend: Doing better than just about everything else

After the mid-March collapse in cryptoasset markets in the wake of COVID-19, Chainlink (LINK) spent a couple of weeks brewing a consolidation that broke out about four days ago. Now, after gaining (or regaining) about 43% of its USD price in a matter of days, this stellar altcoin may be ready to take a break.

Starting on the daily LINK/Bitcoin chart, we can see that Chainlink has blasted through its entire network of previous support, and is now engaged with resistance near its all-time-high levels.

Probably time for a break soonLINK chart by TradingView

We can see the RSI has rapidly traversed its entire range, and is approaching overbought levels here. It is definitely possible for it to keep going a bit longer, perhaps to the top of this resistance zone around ₿0.00048; but perhaps more likely is a period of cooling and test of that support around ₿0.00040.

On the 4-hour timeframe of this chart, we can see just how overbought LINK has got, with an RSI level well into the 90% area.

Indicators look amazing but still overboughtLINK chart by TradingView

There is no bearish divergence on the recent price peaks, indicating a shocking amount of overall strength; ditto for the histogram, whose profile has only grown in the last few days as price has risen. This bodes well for LINK in the MTF; but in the shorter timeframe, we are more likely to see some profit-taking from the massive rally.

Finally, on a 3-day LINK/Dollar chart, we first note that the centerline of this chart has been completely retaken. This is a big deal, and building a base around here to re-secure the area after the vicious COVID-19 selloff would be very healthy for LINK in the long term. $3 should be held fairly easily.

$3 should be held easilyLINK chart by TradingView

The histogram here looks good, about to cross back over to the positive side; and the RSI is approaching a significant inflection line. This line is likely to hold LINK here for a little while, and send it back down into the inflection zone to garner support.

Overall, LINK unsurprisingly looks fantastic again. One of the prime altcoins in the space is back in the game.

The views and opinions expressed here do not reflect those of CryptoGlobe.com and do not constitute financial advice. Always do your own research.

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