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Chainlink to present buy opportunity before LINK rises to $38

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  • Chainlink price could create an extremely bullish entry opportunity.
  • An over 40% gain over the present value is likely.
  • Chainlink, like all cryptocurrencies, is at the mercy of Bitcoin’s post ETF hype price action.

Chainlink price could create one of the most sought-after bullish entry setups in Point and Figure analysis: the Bullish Catapult. However, buyers must keep Chainlink above a certain price threshold, or the pattern will be invalidated.

Chainlink price targets an entry at $29.50 to begin launch towards $38

Chainlink price on the Point and Figure chart below displays clear examples of whipsawing price action and general indecision. First, a triple-top formed at $28.50, followed by a bullish entry alert at $29. However, sellers took control and created a new column of Os (the current O-column). At first glance, it looks like a continuation of indecision – but it is, in fact, a setup for the Bullish Catapult pattern.

A Bullish Catapult pattern forms off of a triple-top and then a following double-top pattern. The Bullish Catapult is so sought after because of the nature in which it traps short sellers. The theory is that the initial spike following the entry is generated mainly by a short squeeze and other trapped shorts. For Chainlink price, the entry is at $29.50. The vertical profit target method in Point and Figure analysis identifies $38 as the target following the breakout.

LINK/USD $0.50/3-box Reversal Point and Figure Chart

However, the bullish breakout is contingent on how Bitcoin will react to the first trading day of the futures ETF that launched on Tuesday. If buyers can sustain Bitcoin’s price action, then Chainlink will have a high probability of hitting the $38 level. On the other hand, if sellers come in, then Chainlink is under threat of returning to the $15 value area.

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If Chainlink price returns to $22.50 or lower, the Bullish Catapult setup is invalidated.

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The how, when, why of Chainlink hitching a ride with Bitcoin, to get to $40

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Ever since 2018, Chainlink has shared quite a good bond with Bitcoin. Whenever the king coin pumped, so did LINK. Similarly, whenever BTC lost value, LINK followed in its footsteps.

Over the long term, having a strong correlation with Bitcoin is undeniably healthy. But, in the short term, especially during periods of downtrends, this factor has acted like a major spoilsport for LINK.

Bitcoin-Chainlink correlation || Source: CoinMetrics

Outlining its fading prospects

LINK witnessed quite a good rally in the period between 22 September to 10 November. In the aforementioned timeframe, the alt’s value witnessed a massive jump from $21 to $38.

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Nevertheless, as BTC started going south, LINK was forced to deviate from its uptrend. And in effect, the alt was back to square one, at the time of writing.

LINK/USDT || Source: TradingView

Over the years, Chainlink has already established itself in the space. It wouldn’t be wrong to claim that this network is gradually becoming the most preferred oracle-solution provider.

Previous articles have highlighted how HODLers passively benefited from Chainlink’s partnerships with smart contract developers. However, the same factor, hasn’t been able to do much this time around.

Consider this – Just a day back, Chainlink took Twitter to announce its recent integrations. The list included a host of projects – right from NFT market places to lending pools based on the Binance Smart Chain.

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Had it been a normal non-Black Friday, LINK’s price would have likely reacted positively to the aforementioned set of developments. However, Bitcoin’s choppiness didn’t allow LINK to relish and acknowledge the same.

Other x-factors

Well, most of LINK’s metrics have been in their finest shape of late. Yet, the token hasn’t been able to rally. It is a known fact that a major chunk of Chainlink’s supply is held by whales. Data from Glassnode pointed out that the percent of supply held by the top 1% addresses had witnessed a steep incline over the past week.

LINK supply held by top 1% addresses || Source: Glassnode

Now, whenever whales scooped up tokens, LINK’s price has more often than not, reacted positively. However, this time around, it just didn’t respond to the whale buying spree.

Additionally, the majority of LINK investors have steadily been clinging on to their respective tokens. The same was highlighted by the rising slopes of the mean coin age and the mean dollar invested age.

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Mean Coin Age, Mean Dollar Invested Age – LINK ||

Source: Santiment

Whenever these two indicators rise in conjunction, it usually implies the absence of sell-side pressure. Now, this is a healthy on given day and usually doesn’t trigger a price-dip. The current state of affairs, however, narrate a different tale.

Well, LINK’s depreciating value amidst the healthy state of its metrics indicate one thing – it desperately needs Bitcoin’s support to rally back from this point. In fact, $40 is definitely an attainable target for LINK in the near future.

Nevertheless, keeping the current state of the market in mind, it can be said that it will still take time for Bitcoin to recover from its dip. As a result, LINK’s anticipated rally might just procrastinate a little.

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Chainlink price needs to hold above $22 for LINK to avoid steep crash

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  • Chainlink price is under pressure from global markets entering risk-off mode, creating headwinds in cryptocurrencies.
  • LINK price already broke $24.55, and the monthly pivot at $23.50. 
  • Should market turmoil accelerate, expect a test of $21.62, and a break  lead to acceleration lower.

Chainlink (LINK) price has fallen following  global market turmoil as investor’s increasingly reach for safe-haven assets whilst dropping riskier holdings.. Following these headwinds, bulls have seen yesterday’s gains quickly reversed, and the downturn since the beginning of November gain additional confirmation. Expect a break of $21.62 to see an accelerated sell-off towards $15, accounting for 45% losses.

Chainlink price could form a falling knife as bulls flee the scene

Chainlink faces double support with the historical level at $24.55 and the monthly pivot at $23.25, which for now looks to be holding, or at least slowing down the selling pressure.Sentiment is backing the LINK price to fall further as sell-side volume accelerates and these support levels are now likely to be penetrated. Expect further downward pressure towards $21.62, the historical August 5 level which was also respected during September. 

LINK price may see some let up in the sell off from profit-taking along the way lower, eventually leading to a make-or-break moment when bears try to pierce $21.62. Whilst there may initially be a bounce off that level it will probably be followed by a break below, which would then see a massive acceleration as sidelined bears seek to jump on the descending bandwagon. The move could lead to an overall 30% devaluation..

LINK/USD daily chart

LINK/USD daily chart

$14.95 could provide an eventual bottom, but many bears will want to lock in some profit on the way down at around $17.00 and the S2 support level. At these levels bulls will have the opportunity to pick up Chainlink at a very attractive discount. Expect a reversal from this zone, and a surge to the upside as the buy-side volume overtakes sell-side action, withLINK price rising back up towards $21.62.

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Chainlink Price Analysis: LINK swiftly recovers back above $26, another lower high to be set today?

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  • Chainlink price analysis is bullish today.
  • LINK/USD set lower low above $25 yesterday.
  • Recovery above the previous low seen this morning.

Chainlink price analysis is bullish today as we expect further recovery after a slightly lower low set yesterday above the $25 mark. Therefore, LINK/USD should see more upside today, with the 28 mark as the next resistance.

Chainlink Price Analysis: LINK swiftly recovers back above $26, another lower high to be set today? 1
Cryptocurrency heat map. Source: Coin360

The market overall saw bullish momentum return over the last 24 hours as sellers are exhausted. Bitcoin gained 2.72 percent, while Ethereum 2.18 percent. Meanwhile, Avalanche (AVAX) is among the top performers, with a gain of over 11 percent.

Chainlink price movement in the last 24 hours: Chainlink sets lower low at $25, starts the day bullish

LINK/USD traded in a range of $25.20 – $26.79, indicating a moderate amount of volatility over the last 24 hours. Trading volume has increased by 20 percent, totaling $949.7 billion, while the total market cap trades around $12.49 billion, ranking the coin in 19th place overall.

LINK/USD 4-hour chart: LINK to set lower high today?

On the 4-hour chart, we can see the Chainlink price rapidly retracing yesterdays loss as another lower high should be set today.

Chainlink Price Analysis: LINK recovers back above $26, another lower high to be set today?
LINK/USD 4-hour chart. Source: TradingView

Chainlink price has seen strong bearish momentum since a new major swing high was set at $38 on the 10th of November. After an initial drop to $33, a consolidation followed until the middle of the month, when another spike lower was seen.

Support was initially reached at $28, with further push lower following on the 18th of November, taking LINK/USD to $26. After a slight recovery over the weekend, sellers took over again on Monday, slowly pushing the market lower until the $26 mark was tested again yesterday.

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The Chainlink price could not hold for long, breaking below the support and establishing a new lower low above $25. Since then, LINK/USD has seen a quick recovery above $26, with further upside likely to be tested later today.

Chainlink Price Analysis: Conclusion 

Chainlink price analysis is bearish today as we currently see strong retracement looking to set another higher low. Therefore, LINK/USD should see further upside later today as the market has not yet peaked.

While waiting for Chainlink to move further, see our articles on the Best Crypto Wallet 2021, Decred Wallet, and Ripple vs SEC.

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