Chainlink has been one of the strongest cryptocurrencies during the past year. Since the capitulation in December due to the SEC news, which affected all altcoins, Chainlink has managed to recover nicely for the past few weeks.
Since we seem to be at the beginning of the altcoin bull cycle, LINK looks very bullish with momentum building.
As we mentioned in a previous post – Chainlink closed the weekly two weeks ago with a strong hammerstick candlestick inside a symmetrical triangle. This was a bullish signal for traders.
LINKUSD with hammerstick
Since the hammerstick close two weeks ago, LINK has been going up in value and this week will likely close above the symmetrical triangle. This is further confirmation for the bulls.
After this, what we would need on the LINK/USD is a weekly close above $18.84. This would most likely propel the asset into the $20’s and into price discovery.
We also would need a close above 0.789 Fibonacci level as it has acted as strong resistance. As mentioned in the previous post, a close above this level would confirm a further move to the upside.
Daily LINK/USD - 0.786 Fib has acted as strong resistance
I will be watching the monthly LINK/USD chart and a close above $15.57 would be the highest monthly close and would clear a move up into price discovery.
Monthly chart support bounce
