Chainlink is one of the strongest cryptocurrencies based on the eco system its operating in. Fundamentally, the use case for LINK is phenomenal. Technically, we will trade this using our H4 time frame analysis.

The market structure was bullish on LINK until recently, the market took a dump towards the $22 price level. This price had a strong support level with all time frames aligning. Right now, market has formed a double bottom, in a bearish structure. This provides us information for a long setup. We anticipate, market reversing its trend once it starts forming HH's and HL's.

The descending trendline formed is expected to breakout for buys. Once its broken out, our confidence for our long position is enhances. Other than this, we have an ascending trendline formed, which has tapped the market for price divergence. This pattern of trendlines is also considered a penant pattern.

The golden retracement level falls perfectly on the support level. This is the confluence we look for to go long.

Both the oscillators- RSI and CCI- are currently moving back towards the equilibrium level from their over-sold region. Once the neautrazlied levels are broken, we can easily say that the market is expected to further move up.

The EMA 50 and 200 just entered in a bearish death cross. With that, long term bearish trend for LINK has initiated until, the death cross is reverted towards the bullish side. Apart from this, the EMA's were broken but not retested. The profit target set for the long position can be the either EMA retest.

Please note that LINK is now in a bullish trend. Once the market has formed the HH's and HL's, forming a bullish structure, we can easily the ride the impulse wave towards our profit target.

Lets hop on Chainlink

Oct 06 2021

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