Chanlink just like many other cryptocurrencies, started its decline and dropped to the price level of 13.25. This price is at the level of support and has a double bottom as a structure. This structure might be formed as a form of reversal pattern for the chainlink to reverse and start surgin up. We are anticipating the profit target at 15.75, which is at the resistance level. Right now, we have not formed a higher high or higher low on the H4. This structure would be deduced after market pounces up from the support level of double bottom.

Two descending trendlines have been breached for the breakout buys by the market. The candles have been validated the breakout buy by opening and closing above the trendline. After the trendline breakout buy, market tends to retrace, which it is retracing right now. This gives us another confirmation for the long positions from the support level. 

The golden retracement area of 75-78.6% is in confluence with the support level. After the trendline breakout buy, markets usually tend to retrace back towards either of the levels. Therefore, we may see another bounce up towards the target profit.

EMA 50 and EMA 200, both are bearish and have a bearish death cross. EMA 50 has been retested after breaking out for sells and EMA 200 is still above the resistance. EMA 200 resides at the resistance level which is the profit target.

RSI and CCI both are on their neutralized levels. RSI is at 43 and CCI is at -130. CCI has a bullish divergence. Price action has been leveling at the support along with the bullish CCI divergence. This adds to the confluence of other technical factors. 

Double bottom on the chainlink

Apr 23 2022

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