One analyst thinks that Chainlink needs to hold the $4 price region if the cryptocurrency wants to be even more popular on the markets in 2020. As you may know if you read our latest cryptocurrencies news, Chainlink’s LINK token has been one of the best performing coins this year with gains north of 100%.
However, the top cryptocurrency Chainlink needs to go into price “orbit” should the $4 price region hold. LINK has only held above $4 for a short period of time. The top trader and analyst suggested that if this region holds as support, Chainlink could go into “price discovery ORBIT.”
But what did the analyst specifically refer to?
I think if we can build some semblance of structure above this level you can send $Link into price discovery /ORBIT.
At that point, your best bet is some basic trend-following method, for me either a 10,14, or 20 MA.
— Cantering Clark (@CanteringClark) May 9, 2020
We are talking about a prominent crypto trader who said that Chainlink needs to hold in order to “build some semblance of the structure above the $3.84 price” – so that it can go into a price discovery ORBIT.
While he did not expand on this exact point, his chart indicates that over the past few months, the $3.84 level has been extremely important, acting as support and resistance on multiple occasions. As it stands, the cryptocurrency seems poised to hold this level.
LINK is now trading at $3.77 as of the time of writing this article, with a notable pullback along with the major retracement of Bitcoin (BTC). The Chainlink news show that the $4 support has been already lost and if the coin wants to go higher in the future, it must reestablish itself above these levels.
The unexpected drop is likely to have caught many traders off-guard. However, the fundamentals of LINK could support the holding of the current price levels – still, Chainlink needs to go higher and reestablish itself for major price discovery.
In the other crypto news this week, we saw that the Chainlink (LINK) token was added to the prominent New York based crypto exchange Gemini, for which the CEO of the exchange Tyler Winklevoss said:
“I really appreciate the passion of the LINK Marines. Their fervor and dedication reminds me of the early Bitcoin and Ethereum communities. Unlike many other crypto armies, they are dedicated to a project that has real promise and technical merit.”
While Bitcoin (BTC) is now the market’s focus, LINK is still an important coin that needs to visit higher grounds before or after the major halving event coming very soon.
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