Chainlink dropped from a high of $14.83 in the past 24 hours to a low of $13.04 and has recovered to the current price of $13.59 in less than 12 hours. The total market capitalization of LINK is around $5.4 billion, around $60 million short of surpassing Bitcoin Cash and really close to Litecoin as well.
Chainlink Price Awaits A Clear Breakout
The most important pattern on the daily chart is the ascending parallel channel. A breakout above the upper trendline at $17 could quickly drive LINK’s price above $20, establishing a new all-time high.
On the other hand, a breakdown below the lower boundary of the pattern would push Chainlink to the psychological support level at $10.
Looking at the 4-hour chart, we can determine the most likely trend for the next few days. So far, bulls have been able to defend the uptrend despite a widespread crash of the market today.
Holding the crucial support level at $13.7, which is the 26-EMA is essential to defend the uptrend. The last low is located at $12.85 and the high at $14.83. Bulls are aiming to set a higher high and a higher low.
The MACD remains bullish but seems to be on the verge of a bearish cross for the first time since November 25. On the other hand, the RSI has cooled off significantly. Most technicals suggest investors to sell on the 4-hour chart but indicate the digital asset remains strong on the daily, weekly, and monthly charts.
When it comes to on-chain metrics, the In/Out of the Money Around Price chart (IOMAP) shows practically no resistance to the upside until $15.65 but a lot of support on the way down.
The number of new addresses joining the network had a significant spike on November 24 reaching 5,120 per day and has dropped to 3,330 now but remains in an uptrend since the beginning of the month.
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