✴️ ChainLink Full Analysis | Bearish, Bullish, Daily, Weekly...

26 de dez. de 2023

We will have to look at multiple charts across multiple timeframes to try and get a full picture on this pair, LINKUSDT.

Remember this is not an exact science and I can be wrong in my assessment. The only thing we can know for certain is the long-term trajectory. My specialty is spotting bottoms leading to bullish reversals. Short-term it can quickly turn into a guessing game because all of our assumptions can prove wrong the next day.

The bigger picture is up.


Long-term bullish... Chainlink just came out of a 525 days long consolidation phase. A bullish breakout as it just happened does not happens just to push prices to new lows, this is a new market phase confirmed, the uptrend or bull-market.

On that note we can start to consider all the possible scenarios which can be reduced to just two:
1) Straight up or,
2) Correction?

There is a third scenario...
3) Sideways consolidation.

You see? Just pulling up the long-term picture makes everything clear and easy.

1 & 2) Straight up Or Correction?

For these scenarios we go to the daily timeframe:
The signals are mixed.

While trading daily above EMA10/50 etc., is considered bullish, this is coupled with decreasing volume and a dropping RSI. Mixed signals.

Another bearish signal is the double top. LINKUSDT peaked 11-Nov. and then again 8-Dec., barely a new high and thus the double top. Double top formations tend to be bearish and can result in a retrace or correction.

Looking at this same chart, MA200 was conquered in September, more than 3 months ago.
Now we see this double top and MA200 trending higher. This previous resistance level can now work as support. LINKUSDT can easily move lower to test this level and see if holds, if it does (high probability it does), then LINK can resume growing.

Considering the previous weekly chart, these levels would match 0.382 Fib. and EMA200.
We can see LINKUSDT trading above MA200 weekly but just barely. Action can happen above/below a level just to quickly reverse. In the case of the weekly chart, EMA200 is the one that can be tested as support but the signals are mixed here as well.

Technically speaking (focusing on the chart signals), LINKUSDT weekly is considered strongly bullish above MA200, but no growth is happening above this level and the session that peaked closed as a Doji which is an indecision candle.

Conclusion

👉 We can say that the main potential is for prices to retrace or in the least continue consolidating for a while before the next move.

👉 For the chart to be considered bullish again, it needs a move and close above the last high, $17, on the daily timeframe to start. Any trading below this level and a retrace/correction can develop any day.

I hope you find this analysis useful.

Namaste.