Link has been in a corrective move since its peak in late August. After the initial sell off to US$9.2, Link attempted a comeback but ultimately failed to break resistance at US$12.8. Since then, the daily chart has depicted a series of attempts to correct further, each with weakening momentum, higher lows and higher highs.
In fact, Link’s corrective moves were -44%, -25%, -18% respectively before it hit the pivotal US$12.8 resistance level once again. Here, the token still did not have enough impetus to push through and was clearly rejected, dropping 21% in 22 days.
LINK/USD daily chart as of November 7th, 2020.
Assuming that this last sell-off was a one off and sell-side pressure continues to decrease, a $15 link is a reasonable price-target for the crypto if $12.8 is decisively reclaimed.
LINK/USD 4h chart as of November 7th, 2020.
Per the above chart, the US$15 price-target acted as a clear lower-time-frame pivot on the 4-hour chart, suggesting a high probability for it to be tagged in the event that bullish momentum takes over. From current prices (US$11.6), this would represent a 26% profit margin.
Of course, there is no light without dark, so this bullish opportunity does not come without caveats. hence, if Link fails to reclaim the high-timeframe pivot, then a secondary macro correction could take the crypto to US$5, which would represent a full retracement very similar to bitcoin’s price-movements in the 2017 bull run.
Depending on investor preference, the US$12.8 pivotal level provides both long and short opportunities for the DeFi token. Of course, Link marines and holders will be happy campers if the crypto reclaims this level as it opens up the door to fresh all-time highs. But given its monumental 1,380% increase since the start of the year, tempering expectations is not unreasonable.
Conclusion – What’s in store for Chainlink?
All in all, this analysis is largely predicated on two factors:
- Weakening sell-side pressure
- The $12.8 pivot which will act as high time-frame support or resistance relative to price-action
Given that Chainlink is one of the major DeFi coins on the market, it’s unlikely for this cryptocurrency to go to zero unless one is convinced that there is no value in the space. In this case, it’s ill-advised to touch anything related to Defi.
Onward Link marines!
Author Credit: Christopher Attard, journalism and content specialist who covers bitcoin and crypto markets. Get in touch at firstname.lastname@example.org and https://chrisoncrypto.com for more info.
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