Chainlink (LINK) is still one of the best performing cryptocurrencies of the past twelve months. As of January 23, LINK is now bigger than Litecoin (LTC) and now number seven with a market cap of $ 9.2 billion, after surpassing Bitcoin Cash earlier this week.
The LINK price hike also coincided rumors this week that Grayscale is preparing to add a Chainlink Trust product. This news event likely played a role in Chainlink’s price rising to new all-time highs, making LINK one of the top performing cryptocurrencies yet again.
What is the main level of support?
The daily chart for Chainlink has shown enormous volatility in recent months, but also some nice price promotions.
Every previous level of resistance turned for support, after which the price continued to rise almost in a textbook style. That’s the beautiful nature of price action and trading in general.
Most people tend to take a position when the price rises sharply. But those support / resistance flips actually give the best submissions. In particular, the first support / resistance reversal occurred at the USD 10 level, after which the same thing happened with the USD 13 and USD 17.30 areas.
Therefore, the crucial level to watch out for potentially more downside is the USD 17.30 area as well as the USD 19.50 zone. This latter area is the previous all-time high in 2020 and possibly the point of the next support / resistance reversal, which would be bullish for more upside.
Possible Chainlink price tops to check out
As Chainlink is engaged in pricing, it becomes difficult to define the following focal points of the potential top structures. However, the Fibonacci extension tool is very useful for traders to determine these areas.
Using this indicator, the first zone is between $ 29-31, which is equivalent to both Fibonacci extensions. The second zone is on the $ 39 2,618 Fibonacci extension and the latter can be found in the $ 42 area.
However, the next impulse wave is likely to be a major rise in Bitcoin (BTC) pair LINK. The recent run has been led by Bitcoin, while the altcoin-BTC pairs have been relatively flat.
Once Bitcoin has completed its correction and starts moving upwards slowly, the likelihood that altcoins will do better Bitcoin is rising.
LINK / BTC meets large resistance zone
The altcoin BTC pairs have woken up from their deep sleep in recent weeks, but it can’t quite be called an “altseason” just yet. Altcoins still need to consolidate and build strength for the next step.
For Chainlink, such an accumulation is shown on the left side of the chart. Chainlink’s price had been trading in an accumulation range for some time before the last wave started to happen.
For such a big rise to occur, the price of Bitcoin must remain stable. Otherwise, the volatility in BTC will have an even greater impact on the less liquid altcoins.
LINK / BTC is now facing crucial resistance. If this level cannot break upwards at 0.00074000 sats, retesting at the 0.00055000 and 0.00041000 sats levels is possible.
However, if Chainlink breaches 0.00074000 sats, continuation is likely towards the next significant zone at 0.00110000 sats. In the USD pair, such a rise would bring Chainlink close to the next Fibonacci zone at $ 39.
The views and opinions expressed here are solely those of the writer and do not necessarily reflect Cointelegraph’s opinion. Every investment and trade move carries risks. You should do your own research when making a decision.