Small Chainlink Uptrend Possible After Holding Bottoms — Price Analysis

  • LTF (Low timeframe) trend: We may soon see a small uptrend
  • MTF trend: Still within downtrending structure but with potential to break it
  • HTF trend: Long term picture unclear amid ongoing COVID shock

One of the best performing altcoins of the cryptoasset space, Chainlink (LINK) seems to be stabilizing well and even offering a small uptrend in the wake of the COVID-economic-crisis (as I call it).

We start on a daily LINK/Bitcoin chart, and first draw our attention to the two blue bands which make up the made regions of structural support on the LINK chart. Although the top of these bands was basically lost during the market rout last month (happy April), the level below that has held very well.

Pretty healthy all things consideredLINK chart by TradingView

We see a bull divergence progression on the RSI, here, which has already translated into a small price pop into the higher support zone. The histogram has just crossed over into positive price territory after a perfectly flat and steady progression up. If LINK can hold the 8 EMA and get over the dashed trendline, we might see an uptrend to the top of the higher support zone.

Moving to a 3-day LINK/Dollar chart, we see that price has likewise been held at critical support here – although generally, far more damage was done on this trading pair versus LINK/Bitcoin during the big COVID drop.

Still room to confirm bottomLINK chart by TradingView

The RSI here has held at a critical level, as did the vital support zone starting at $1.80. It is very possible that we could see a return and retest of $1.80 and the critical uptrending link underpinning the market, and it is comforting to have that margin of space below current price for bottom-laying.

Finally, in the LTF 4-hour LINK/Bitcoin chart, we see the beginning of what may be a LTF uptrend against BTC. An initial leg up is holding in its retracement around the ‘golden pocket’ area; holding here ultimately may signal an uptrend rather than the end of a corrective movement.

Maybe an uptrendLINK chart by TradingView

LINK was a star performer during 2018 and 2019, and even the start of 2020. It continues to hold up as well as any altcoin could expect to in this trying market.

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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