Chainlink has been on an accumulation stage for a month after hitting ATH levels. LINK had set an ATH record of $37 on February 20, 2021, and what followed was a consolidation phase due to selling pressure. It Plummeted to $25 and took support.
However, the price of the LINK token saw an acute rise of 9% on March 17, 2021. This rise was due to the announcements of Grayscale disclosed plans on Wednesday for new investment trusts linked to the digital assets. Link token made it to the list along with MANA, FIL and others. All the assets mentioned on the list saw significant volatility.
However, the traders are accumulating slowly to the news such as Filecoin integrating the chainlink oracles to create truly decentralized Web 3.0.
It is common for cryptocurrencies to react sharply to the positive news in the market. But it is to be seen, what is the direction it will follow for the next quarter.
Technical Analysis of LINK
With the current price of $28.3931, Chainlink boasts a market capitalization of $11.812 Billion. The value of the total volume of transactions surpassed $$1.079 Billion in the last 24 hours, with an increase of 19.41% compared to the last 24 hours.
Looking at the 30-minute candle chart, it is evident that the Link was following a Parallel-ascending pattern. Soon after the announcement by Chainlink, the Link price saw a reversal in trend, by taking support at $24.5. Parallel resistance along with the Higher Highs should be broken to see a bullish momentum. But the candles could not form above the resistance levels of $28.5.
There is a good support level at $28 levels. There is a possibility of good consolidation at the same levels. In case the support levels at $28 are broken, there are additional support levels at $27.5 and $26.1.
Apart from the trends, the Bollinger band is indicating the potential for strong momentum according to the price action. The Relative strength index also suggests the same, lying between 55-60 levels. The currency falls at a phase where the price action can run the bull run or bearish fall.
Fibonacci levels indicate that the value of Link is trading at a strong 0.76 levels. Hence it can be assumed that if the market wants to break its ATH levels, it has to consolidate at around the current price levels of $28.3931.
There is also a chance of a breakdown due to loss of volumes, however, this fall can get support at $25.
Support Levels: $28, $27.5, $26.1.
Resistance Levels: $28.5, $ 29.3, $31.
MACD: Moderate to Bullish