- ChainLink’s free fall has been abated by the 50-day moving average
- Traders are still selling their LINK but a bounce could be in the making with the weekend only hours away
- Corrections such as LINK’s are normal and healthy
- LINK’s price is still within an acceptable range of its Metcalfe value
ChainLink’s correction from its August 16th peak above $20 seems to have slowed down thanks to the 50-day moving average. In the last two weeks, LINK has been in the process of finding an equilibrium after an impressive run that started on August 2nd and inspired by LINK marines wanting to liquidate Zeus Capital.
A Brief T.A of ChainLink (LINK) Hints of a Weekend Bounce
Revisiting the daily LINK/USDT, we find that there is still some selling pressure as seen through the trade volume being in the red. However, and as earlier mentioned, the 50-day MA (white) is providing much-needed support for LINK above the $12 price level.
Further dissecting the daily LINK/USDT chart, the following can be observed.
- The daily MACD is still in bearish territory, with its histogram also confirming selling pressure
- The daily MFI is at 47 which is neutral territory and could provide a hint of what the weekend holds for LINK
- During yesterday’s market sell-off LINK fell to as low as $10.80
- This area was again revisited earlier today and could signal a potential double bottom
- With the weekend only hours away, LINK could be gearing up for a bounce similar to the one seen on August 22nd and after Dave Portnoy admitted to selling his ChainLink bag
- From a macro level (weekly chart), LINK is still in a downtrend
LINK’s Current Price is Within its Metcalfe Value
Also to note is that Crypto analyst Timothy Peterson of Cane Island Alternative Advisors, recently posted the following chart on Twitter indicating that LINK’s current price is still within an acceptable range of its Metcalfe Value.
#ChainLink $LINKhttps://t.co/aaCqAGEbFd pic.twitter.com/oS7Ti04RFw
— Timothy Peterson (@nsquaredcrypto) August 25, 2020
Summing it up, LINK’s 50-day moving average has provided an area of strong support for ChainLink and stopped what looked like an accelerating freefall. Additionally, the weekend could provide the perfect environment for a significant bounce for LINK to the $13.90 resistance area or even $15. Furthermore, LINK’s current price is within an acceptable range of its Metcalfe value.
As with all analyses of ChainLink, traders and investors are advised to use adequate stop losses and low leverage when trading LINK on the various derivatives platforms.
Source: Read Full Article