Cryptocurrency had been on a roller coaster ride lately. After much ranging market, we are seeing a push off towards the upper side. Chainlink is one of the solid projects in the cryptocurrency space. To evaluate it as a trading point of view, we will technically analyze it on H4.

- Market structure: Chainlink throttled its pace after bottoming out at 13.50. Since that price, it has started to move up forming HH and HL’s, which interprets, a bullish structure. Market is now in a range between support at 21.90 and resistance at 25.80. At the support level of 21.90, we will look for buys and anticipate Link breaking upwards to the previous high.

- Trendline: There is an ascending trendline in the formation. This trendline may be tapped at the support level, which will confluence it with the support.

- Retracement: The price at 21.90, we have a golden zone aligned with the support level. This level may act as a strong support, disabling the market the further break down.

- EMA's: EMA 50 and EMA 200 had a death cross for the bullish trend. After the death cross, the market tends to trend in that specific direction of the death cross, which in this case, is the bullish direction. We may see an EMA 50 retest at the support level, which will give us 4 confluence points to go long.

- RSI/CCI: Both the oscillators are in a bullish region. Until they are above the 50 and 0 levels respectively, it is safe to apprehend the fact of Chainlink heading up after tapping the support.

With Chainlink, we have 4 confirmations at the 21.90 level of support to go long. Although the cryptocurrency market is starting to rally again, we will still wait for Chainlink to test the support to continue up. As there is a range right now, the pressure being built up may take the Chainlink to a higher high.

Chainlink in a bullish move

Aug 07 2021

1