Chainlink Price Analysis for December 28th

Spread the love

Disclaimer: The conclusions of the following report are the sole opinions of the author and should not be taken as investment advice.

With XRP facing the proverbial axe of the SEC and likely to see an exodus from exchanges, some people were wondering if Chainlink will be next? Although this is nothing but a case of ifs and buts, let’s take a look at what’s right in front of us, the price, and what to expect from it.

Chainlink gained popularity in 2020 and has an environment that is reminiscent of the XRP Army back in 2017 and 2018. However, unlike XRP, the price of Connection reached $20, with cryptocurrency trading at $12.5 and placed 10th on CoinMarketCap charts.

Chainlink 6-hour chart

LINKUSD TradingView

Source: LINKUSD on TradingView

Unlike other altcoins, LINK seemed to be showing a pattern during its ups and downs, with its slopes serving as support and resistance levels. Since December, although the price of cryptocurrency has slowed, it has been in the consolidation process. Consolidation appeared to be a descending triangle, with a fakeout recently leading to a sudden 23+ per cent decrease in the 6-hour candle. However, after this decline, the price has risen, with the same in the descending triangle trend. If this is to continue, we may expect LINK to evolve further and pass sideways.

RECOMMENDED READ:  France Approves New Cryptocurrency Measures to Fight Anonymous Transactions

Rationale

The RSI indicator reported an uptick following its drop during the forgery, a finding suggesting a healthy recovery. While it wasn’t bullish yet, it wasn’t bearish either. However, since the Stochastic RSI was in the over-purchased zone, we can expect the price to be lower while managing to remain in the pattern.

In addition, the Fibonacci retracement stage also told a significant tale. The amount of 0.382—Fibonacci at $12.158 would serve as price support, stopping it from going down.

Conclusion

In the short-to-medium-term scenario, we can expect LINK to remain stuck within the pattern. However, theoretically, there should be a decrease towards the end of the pattern.

A wild card scenario would be a flash crash of LINK’s price from this pattern. In the light of the bullish rally of Bitcoin without a pullback, there could be a possibility for LINK as well as other altcoins to drop if the BTC crashes aggressively.

 

 314 Interactions,  6 today

READ ALSO:
Crypto trader’s smart mining approach inside a BMW trunk

US-based crypto trader and miner Simon Byrne has six Nvidia RTX 3080s graphics cards in the trunk of his BMW Read more

Signal messaging service looking into privacy crypto payments options

Fast-rising messaging service Signal is rumored to be experimenting with a privacy crypto token. Privacy-focused chat app Signal is currently Read more

How to avoid U.S. trading hours to save few Ethereum gweis.

Anyone who used Ethereum in 2020 understands the annoyance of paying for gas, a metric that reflects the numerical weight Read more

Leave a Reply

Your email address will not be published. Required fields are marked *

Contact Us

%d bloggers like this: