Should you buy ChainLink ahead of a potential breakout? Here’s what the charts say

Chainlink

With Bitcoin (BTC/USD) rapidly approaching $60,000, ChainLink (LINK/USD) could give the much-anticipated breakout and go to new highs. Chainlink was up 6% on Thursday, leading many to question if this is the start of a new rally? Let’s take a look at the charts to identify signs of a rally.

  • Link has formed a symmetrical triangle and is now showing signs of a new swing to the upper trendline, around the price of $31.
  • Link was about to cross its 200-day moving average on Thursday, this could be a huge sign for bullishness in the coming weeks. 
  • A long entry can be taken once the 200-day moving average is crossed, or cautioned investors can enter once a breakout is witnessed.
  • Once Link breaks out, the first target can be set at $37 and a longer-term target above the all-time high can also be set.
  • For investors entering around the $30 mark stop-loss below the trendline at $22 can be set.

A closer look at this weeks chart can be seen below:

  • After a sharp rally on Thursday, the RSI was in the overbought zone suggesting a short pullback before a continuation of the up-move.
  • The price should pull back to around $26, which is a demand zone and the 200-day moving average for Link.
  • Once Link crosses the resistance at $28 it could give a huge move towards the upside.

Conclusion

Investors who want to take up some risk can enter around $27 and get in early and potentially before Link gives a breakout, however, investors who do not want to take the extra risk can enter once Link gives a breakout above $31.Link should be able to achieve targets of $36 and above without any difficulties.

The post Should you buy ChainLink ahead of a potential breakout? Here’s what the charts say appeared first on Invezz.

Publication date: 
10/14/2021 - 19:01
Author: 
Disclaimer

The views and opinions expressed in this article are solely those of the authors and do not reflect the views of Bitcoin Insider. Every investment and trading move involves risk - this is especially true for cryptocurrencies given their volatility. We strongly advise our readers to conduct their own research when making a decision.