Chainlink Price Movement Analysis for 21st February 2021

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A new day and a new peak for Bitcoin and a lot of other altcoins. However, amid the boom seen earlier, the crypto market has seen a phase of consolidation as the purchasing pressure decreases. Chainlink [LINK] has been a big crypto player on the market that has been able to carve a niche in the decentralised finance ecosystem and has been trading up since the beginning of the month.

With a market capitalisation of $13.96 billion, the Connection native token of Chainlink slipped to ninth on the CoinMarketCap list. The digital asset was traded at $34.42 at the time of publication.

Chainlink daily chart

The above chart of Connection illustrated the price increase in the ascending channel. The price has risen by at least $10 inside the channel, although there may be a negative price breakdown in the future.

Reasoning

Given the market volatility, there may be a shift in the trend leading to the Connection market. The Bollinger Bands saw the market become more volatile as the bands diverge. Meanwhile, the 50 moving average along the signal line stayed under the candlesticks to act as support.

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Whereas the relative strength index remained close to the over-purchased region. This suggested that there were more buyers than sellers in the Connection market. The indicator had briefly reached the over-purchased field, but had traced back its moves.

The correction could find its way to the Connection market, as it was saturated by the buyers and its indicators were serious.

 

Important levels

Entry-level: $26.65
Stop-level: $37.82
Take profit: $26.65
Risk to Reward: 1.27

Conclusion

The Chainlink market has witnessed a strong price spike, but the trend may result in a breakdown. This might result in the value of the asset falling to support close to $26 in the coming week.

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