The last time Chainlink had a similar chart of what we are seeing today, Chainlink broke the 5$ resistance, headed straight up to all time high of 20$. That was on the sixth of July 2020, reaching the ATH of 20$ on the 15th of August. Since then, Chainlink have been in a downtrend, trading above 200 EMA - on daily chart-.

Even though the team of Chainlink used to sell 1 million LINK every month, increasing the circulating supply to 391509556 LINK, from total of 1 billion LINK. This had a little overall impact on LINK price due to huge trading volume, and high market cap of approximately 5 Billion USD. Lately Chainlink’s team have been selling 1 Million LINK per week.

Technical Analysis

Chainlink just broke out of the major resistance line formed since ATH, the close of the daily candle above 13.22$ is considered extremely bullish signal, since LINK is currently trading above 40 and 200 EMA, removing previous resistance from existence, and aiming to test next resistance level of 14.92$. Failing to break through will lead us back to range between 11-13$. The market in general have been extremely bullish in the last few days, observing BTC dominance pullback to 62% may lead us to see new LINK highs, probably passing previous ATH.

The perfect entry for this trade will be around 13.2$, with first target of 14.1$, this trade is considered as short-term to midterm trade, falling below the levels mentioned before will be eventually the trigger to exit the trade.

In the chart above you can see clearly the breakout of Chainlink.

This is not a financial advice, we share our point of view and technical analysis, please trade wisely and do your own research.

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Crypto Army