Chainlink cryptocurrency poised to climb to 2020 peaks again


Chainlink has made headlines so far this year after scoring a number of partnerships that have enabled it to consolidate the usefulness of its native token, LINK. The constant announcements of new startups using its technology have played an important role in the price of this altcoin.

The decentralized Oracle token increased by almost 200% between the first three months of 2020 to reach a new record of $ 5. But when COVID-19 started to wreak havoc on the global financial markets, LINK fell dramatically until it reached $ 1.5.

The recession has not stopped retail investors from trying to get a share of this cryptocurrency. Chainlink's demand continued to increase, allowing its price to recover all the losses suffered during Black Thursday in March.

Now, a leading analyst thinks that LINK could prepare to retest the recent all-time records.

Chainlink looks set for bullish momentum

Michael van de Poppe, full-time merchant based in Amsterdam, Explain Chainlink is at a crucial point in its trend which would likely determine where it is headed next. The decentralized Oracle token trades in a narrow range defined by the support at $ 3.40 and the resistance level at $ 3.75.

An increase in buying pressure behind LINK that allows it to exceed resistance can be followed by a move towards $ 4.10. But if demand continues to rise, van de Poppe thinks this altcoin could possibly test the next resistance barrier that ranges between $ 4.60 and $ 4.80.

Chainlink US Dollar Price Table

The mesh is located between two main barriers. (Source: Twitter)

Nevertheless, the well-known analyst said that a downward boost below the support level of $ 3.40 could jeopardize the bullish outlook. In such circumstances, sell orders behind LINK can build up by pushing its price up to the next demand wall at $ 2.90.

Strong support and resistance

IntoTheBlock's "In / Out of the Money Around Price" (IOMAP) model adds credibility to the importance Van de Poppe gives to support at $ 3.40 and resistance level 3, $ 75.

This fundamental index estimates that the bulls could face strong resistance of around $ 3.78, where around 11,800 addresses bought more than 11.65 million LINKs.

On the other hand, IOMAP shows that around $ 3.45 is also an important level to consider. More than 4,230 addresses have nearly 17.3 million LINKS around this price level.

Such a massive supply barrier could make it difficult for bears to take control of Chainlink's price action.

Entry / exit of the silver price chain.

Entry / exit of the silver price chain. (Source: IntoTheBlock)

Given the importance of the trading range between $ 3.40 and $ 3.75, this area can be considered a reasonable no-trade area due to the inability to determine in which direction the trend will lead.

Once the break in support or resistance is confirmed, we could consider Van de Poppe's objectives.

Chart from Unsplash



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