Chainlink: Plotting the odds of LINK bouncing back from its vital support level
Disclaimer: The findings of the following analysis are the sole opinions of the writer and should not be considered investment advice.
After hovering within the bounds of the $13-$35 range for over nine months, Chainlink (LINK) ditched its long-term floor amid multiple sell-offs. In the recent bear phase, the sellers kept lowering the baseline only to find fresher multi-month lows.
As the $10.96-level seemed to finally hold the steep fall, LINK could find itself recouping on the charts in the times to come. At press time, LINK was trading at $11.14, down by 7.2% in the last 24 hours.
Source: TradingView, LINK/USDT
Despite finding a cushion in the $13-zone for over nine months, the market structure gave enough impetus to the sellers. As a result, it became conducive for them to pull off a 41.74% drop over the last month.
Saving the Point of Control (POC, red) level was vital to continue a gradual recovery on LINK’s troughs. But the late April sell-off entailed a bunch of bearish engulfing candlesticks that pulled LINK below all the vital price points. After dragging the alt to its 16-month low on 1 May, the buyers finally found a restoring spot in the $10.6-zone.
After taking this enormous plunge, LINK’s Bollinger Bands (BB) broke into high volatility while its price gravitated toward the ‘cheaper’ or the lower band of the BB. A likely recovery from the current lows would expose LINK for a retest of the $11-$12 range before a trend committal move. To overturn the basis line (green) of BB, the alt would need to break convincingly above the $12-mark on strong volumes.
Source: TradingView, LINK/USDT
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