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. We will now look to buy chainlink at the 26.50 price point. This price would be in confluence with the retracement and the support level, hence giving a better long position.

The descending trendline formed has been breached and induced the breakout buys for the market. Cadnles have validated the confirmation for the breakout buys. Now, the market will continue going bullish with short retracements until a counter trendline induces a breakout sell.

The golden retracement level falls just short of the support level. This is the confluence we look for to go long. Market may wick at the 75-78.6% level and then continue hopping up.

Both the oscillators- RSI and CCI- are at 73 and 150, respectively. Extended over bought situation reflects a bearish pressure taming down. We have to wait for the oscillators to fall back at the neutral level and then on our support level. 

The EMA 50 and 200 just entered in a bullish death cross. Both the EMA's are below the prices, indicating a bullish sentiment on the cryptocurrency. We will have an EMA 50 retest at the support level along with other factors. EMA 200 still stands below the support, hence, might not be tapped at the support level. 

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.

Missed on Chainlink

Oct 22 2021

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