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Nick Leeson
Feb 26, 2020
by Nick Leeson

Link's short term charts overtaken by bears; back to $3.0?

link
Link is probably the next project with a cult-like following apart from XRP. Unlike most altcoins, Link is among few projects that seem to be actually working towards solving problems. Its partnership with Google put Link on the map, or at least for new investors.

Chainlink is playing an important role in many projects that are utilizing its oracle capabilities. It has a major role in Ethereum's DeFi ecosystem. The recent attacks on the DeFi project were critiqued by a lot of users as Fulcrum did not use Link's solutions.

As for the price, Link is currently trading at $3.69 on Coinbase and by the looks of the chart, the price is going to collapse further down.

  • Chainlink's price hangs by a thread and its collapse is expected in the next 10 to 20 hours.

  • The formation of a top reversal pattern adds to the bearish nature of the coin.

  • Important levels to look out include, $3.59, $3.31, and $3.07.

    • 60 Minute Link Chart

    Source: Trading View.

    Link's 60-minute chart looks infested with bears, especially since there is confirmation of a top reversal pattern - double top. A double top pattern, as the name indicates, occurs at the top of a trend, indicating a reversal of a trend. This pattern is complete when the price breaches the valley between the two tops and stays below it.

    As of writing, not only has the price has breached the valley but it has also failed to reconquer it. Thus indicating more downtrend to come. The drop can be devastating, the first target for Link is $3.31 which is at 10% from its current price. The next support will be at an 18% drop from its current price to $3.07.

    Although these two drops seem steep, there is one level of support before the price hits the above-mentioned levels - $3.59. This level will act as a cushion to the massively bearish scenario thus preventing or at least trying to prevent the collapse in price.

    Supporting this massively bearish scenario is the DMI indicator. The ADX line (Yellow line) has peaked, indicating the end of the rally and the start of a collapse. Further, the DI+ (White line) and the DI- (Redline) are both diverging from each other, the former to a lower level and the latter to a higher level, additionally, confirming the downtrend.

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    Link's short term charts overtaken by bears; back to $3.0?
    Nick Leeson
    Nick Leeson is an avid trader and cryptocurrency enthusiast. Introduced to cryptocurrencies in early 2016 by a misclick on a YouTube video, Leeson has grown increasingly fascinated by them. He owns cryptocurrencies to trade and complete his goals of growing his accounts from scratch. Leeson's favourite cryptocurrencies include a lot of mid-cap altcoin projects that have the potential to actually disrupt the future. Any and all technical analysis/price prediction by Leeson is not a financial and/or investment advice of any sort.

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