At this level of $13.50, market is at a support level. We need to wait for the market to retrace back to the support level at the price point of 13.50. This area will be our long area. Link has started to form higher highs and higher lows. This means, bullish momentum is building up for a continuation up. On the higher time frame, we have higher highs and higher lows. On the lower time frame on H4, we have a bearish structure. At this support, we will have a double bottom which can bounce up. 

At the support level, the retracement level of 75-78.6% is in confluence with the support level. This support level is in confluence and has a strong push up criteria. The price of this retracement is at 13.50.

The descending trendline has been priming for breakout buys. The candles need to validate the breakout buy by opening and closing above the trendline. Now, as the resistance has broken as well, we just need to wait for the retracement. On the other hand, we have a support trendline tapping the prices at the support level. This will act as a confluence for the market to continue moving up.

EMA 50 and EMA 200 both are bearish. Market is tapping the EMA 200 for a retest, and we might see a pullback. Once thats done, we will have the support level, where our long positions will be waiting. We anticipate the market to break towards the upside by breaking the EMA 50 and then EMA 200.

Both the oscillators are in a bearish region, near over sold area. This area needs to be neutralized at the levels from where, the confluence is formed with the support level and the retracement. We see a bullish divergence on both the oscillators. Once this momentum has caught traction, it needs to start moving up.

The Chainlink is at a discounted price right now and has the potential to up 100% from the current price. The upside is infinite where as the down side is limited to the $10.Buying

Chainlink dropped again

Apr 15 2022

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