Chainlink Technical Analysis: Is Chainlink ($LINK) Warming up for a Big Bull Run?
Trading Analysis

Chainlink Technical Analysis: Is Chainlink ($LINK) Warming up for a Big Bull Run?

2 years ago

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Chainlink Technical Analysis: Is Chainlink ($LINK) Warming up for a Big Bull Run?

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Those who invested in cryptocurrencies around 2019 and 2020 remember the massive growth Chainlink (LINK) experienced. “LINK Marines” was a commonly known ‘meme’ in the whole crypto space back then. It referred to those who always stepped in to buy the dip and brought Chainlink (LINK) to new all time highs a few weeks later.

The token rose about 20x in comparison to Bitcoin in only a 15-month time!

Just when people started thinking that this token has already hit its top, it surged to hit its top price at around 0.0016137 BTC. This record high was about a year ago, to be precise.
Right after that, the token began its fall, and in only four months, the Marines lost 80% of the value of their portfolio in the Bitcoin pair.

Ever since the top and then the low, LINK is moving in the same zone in the BTC pair..

But, is there still a possibility that LINK goes for new all time highs in the coming months? Also, what does its USDT chart look like? Before jumping to that, let's discuss the token’s price in its BTC pair a little bit more.

LINK/BTC, 3D Chart

On the chart, you see the demand zone where LINK started the real parabolic phase previously. Price made the All-Time-High (ATH), and went all the way back down and deviated below the demand zone. Afterwards, you see the demand zone is acting as a support level and the price is ranging in the same zone.
Ever since the top, the volume has been falling which is a typical behavior after a token hits the top, a bottom, and during the range after. Due to such market activities, there are only a few sellers left. Bulls need to see a breakout of LINK’s price on the chart from the current zone combined with a breakout in volume. Such a breakout will confirm a new bullish market structure that will probably continue for the next few months.

LINK/BTC in 1D chart

The situation gets a little bit clearer when you look at the daily chart. The price is making higher lows and higher highs, which confirms a bullish structure. What this bullish continuation needs is to break above the daily supply zone, make it support, and continue the upwards movement.

LINK / USDT in 1D Chart

Let's have a quick look at LINK’s price in USDT pair. You will witness the same bullish market structure that’s been going on since July. Its price made an all-time-high in May, just like many other cryptocurrencies. Afterwards, following the dominance of BTC in the market, it corrected massively. The price printed a low, retested it, came back another time, and deviated from it. The deviation trapped many traders, because ever since that deviation price is making higher highs and higher lows. The Exponential Moving Averages (EMA) are lined up bullish again too.

Summarizing Everything for the People in a Rush

After reaching its all-time high value back in 2020, Chainlink (LINK) token has been facing a downward trend. As it has been stuck in the same zone for quite some time, there are only a few sellers left in the market. Therefore, it is quite a confirmation that there won’t be a major dip in its price in the next few months unless BTC takes the market down again. If bulls manage to reclaim the $34/$35 zone, new highs should be on the table.
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