an hour ago | Michael Fasogbon
Key Highlights:
- The triangle breakdown on the daily chart may cause more bearish pressure if $1.5 support breaks.
- ChainLink is footing a short-term bullish pattern on the hourly chart with an inverse head-and-shoulder pattern.
- However, LINK’s bearish bias is still dominant on the long-term perspective.
| ⠀ChainLink price: | $1.80 |
|---|---|
| ⠀Key LINK resistance levels: | $2.3, $3.1, $4 |
| ⠀Key LINK support levels: | $1.50, $1, $0.50 |
*Price at the time of writing
LINK Long Term Price Prediction: Bearish
ChainLink is a decentralized platform aimed to close the gap between smart contracts on the blockchain and the real-world applications through the use of “oracles”. Since blockchain cannot generate or connect data outside their networks, oracles find and verify real-world data and send it on-chain for integration on smart contracts.
How to buy ChainLink on Binance (LINK)
Having spotted as one of the biggest gainers in 2019, LINK later carves a symmetrical triangle, which eventually broke down after the mid-year bear market. Now, the cryptocurrency is trading near a prominent support area – marked grey on the daily chart. This support area of $1.50 is likely to provide a rebound.
A nice bounce would enable buyers to step back in the market as the LINK market could climb back to $2.3, $3.1 and $4 resistance. Nonetheless, the bulls are yet to show commitment as the bearish pattern remains valid at the moment.
However, a drive beneath $1.5 support would confirm a typical symmetrical triangle break to $1 and $0.5 support. ChainLink is currently deciding on whether to break or bounce. We may need to wait for a confirmation before stepping into the market.
LINK Medium Term Price Prediction: Bearish
ChainLink is shaping bearishly inside a medium-term channel. Looking at the channel pattern, a bullish move is likely to play out. This should happen as soon as buyers return to the market. After the channel fakeout in mid-December 2019, the price has remained below $1.98.
LINK, the 19th largest cryptocurrency by market cap is now priced at $1.8. If the buyers can push the price above the channel boundary to surpass the first grey resistance area of $1.98, we should anticipate buying to $2.1, $2.3 and $2.47 in no time. On the other hand, the bearish trend would continue to flag if the current support of $1.7 breaks.
LINK Short Term Price Prediction: Bearish
The recent recovery from the medium-term descending trend line has brought an inverse head-and-shoulder pattern on the short-term perspective. The bullish pattern is yet to complete with a break on the neckline. If such a scenario occurs, the typical projection is $2 considering the price range of the head. Though, LINK is still in a downtrend. We can expect an uptrend soon.
A false move may continue to keep the market in a downward range. In such a case, the $1.75 and $1.69 supports are likely to provide a level for selling pressure. A drive below these supports may cause more weakness in the market. But as it stands now, the bulls are more likely to assume control of the market in a short-term.
Conclusion
LINK appeared to have found support around $1.5. If this support firmly bolsters, a moderate gain is expected to $3 in no time. More so, the inverse H&S pattern on the short-term is an indicator of a bullish move. However, if the supply outweighs demand, ChainLink might remain bearish until buyers regroup well.
Previous LINK price analysis
At CoinCodex, we regularly publish price analysis articles focused on the top cryptocurrencies. Here’s 3 of our most recent articles about the price of ChainLink:
