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The Bitcoin price was rallying higher, at the time of publishing, and inches closer to the $60K range. This abrupt boom has also increased the market demand of altcoins. Chainlink [LINK], although it was weakly associated with Bitcoin, also observed a spike.
At the time of publishing, LINK was trading at $29.26, thus breaking through its immediate resistance at $28.93.
Chainlink [LINK] four-hour chart
The demand of Chainlink [LINK] indicated that the price movement had led to a downward trend, which was a bearish pattern. However, given the rally in the market, the Connection price could see a significant uptrend in the medium term.
The Bollinger Bands also expanded to reflect an uptick in market uncertainty. The price was swinging higher than average and lead LINK to outperform the resistance at $28.93 and to jump higher. This abrupt market swing saw the bulls taking over the signal line slides under the candlesticks.
The 50 moving average, which served as a resistance, was now moving over the candlesticks, and if the market started to rise, the MA would fall under the price bars.
Whereas, the relative strength index was sloping towards the oversold sector. The unplanned uncertainty, however, caused RSI to bounce into the equilibrium region. The pressure of purchasing was equivalent to the pressure of sale on the market.
Take Profit: $31.10
Risk to Reward: 1.84
The current demand for Connection was very volatile and could result in a price of $31. While the support stayed at $28, LINK can drop to $27.65 if the price is right. Notwithstanding the current trend, a swing in the BTC market could have an effect on the trajectory of the current price.