LINK forms pivotal bullish reversal sign after it dropped by 50% and undergone a strong rejection over the past few days as we reported in the chainlink crypto news.
The coin traded down by 13% over the past day dropping below the $9 sign for the first time in weeks. Since the all-time highs set of a few weeks ago, LINK got down by over 50% which is worse than the performances of other altcoins. Chainlink forms pivotal bullish sign and it could bounce soon as these have been formed. It’s important to note that while the cryptocurrency could have its own technical merits, Bitcoin’s price will decide the overall trend of the crypto market that moves forward.
The Tom Demark sequential formed the pivotal buying signal for the LINK 9 candle on the current daily chart which is a sign that is often seen before the bullish reversals. The Tom Demark Sequential is a time-based indicator that forms 9 and 13 candles when the asset is at an inflection point. The signal suggests that Chainlink’s trend has been exhausted and will reverse to the upside soon. The bullish analysis comes right after the historically accurate trader noted that chainlink will move back above the $20 level:
“Stinkbids on $LINK at $8-9 and accumulating some now around $10. Invalidation if price starts fucking around below stinkbids & will build more size if trend confirms. I think this is going to $28-32 on the next run. $BTC pair also looks ready to turn around soonish.”
Bitcoin could lead the way for Chainlink but it did recently slip lower due to the weakness in the legacy markets. The altcoins are usually seen as a higher volatility play on BTC, LINK and other coins dropped even more than the market leader. Assuming that this trend will continue, Bitcoin has to start the recovery process.
Chainlink was dire during the trading session in September and it was also struggling since mid-August when it dropped from $20 with the bulls nowhere near to curb the drop. The asset dropped again from the previous level of $16 to hit a new low of $9.00. The buyers managed to regroup and to close the low-candle from September above the $10.40 level where the support was provided by the downside at 1.618 fib extension level. Once it hit the support, LINK was hovering around $13.35.
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