2020-1-8 05:11 |
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The LINK price has been decreasing since November 14, 2019. It has reached a significant support area and is showing signs of a reversal.
The LINK price has been increasing since 2017. However, it has seemingly approached a make-or-break support level, a decrease below which would indicate that the upward trend has ended.
Trader @TheEuroSniper tweeted out a chart for the LINK price, indicating that it is following a curved ascending support line that predicts exponential increases for the future of the price.
$LINK / $BTC #BINANCE pic.twitter.com/CQ7wYIUTQE
— €uroSniper (@TheEuroSniper) January 6, 2020
Will the LINK price continue to follow this support line? If yes, until when will it do so? Keep reading below if you are interested in finding out.
LINK’s Rate of IncreaseThe LINK price has been increasing since December 2017, when the price reached an all-time low of 1000 satoshis. The rally continued until the price reached a high of 39,500 satoshis on July 2. After a period of retracement, the price created a double top near 36,000 satoshis and has been decreasing since.
The price is not following any straight ascending support lines that have been validated more than twice. The closest is a support line that has been in place since May. Combining it with the double top resistance at 36,000 satoshis, it creates an ascending triangle.
We can draw a curved ascending support line that has touched every higher low. However, the line is getting parabolic — indicating that, if the price continues following, it will soon break out above the resistance area and reach a new all-time high.
Bullish FractalThe LINK price has had an interesting relationship with the 200-day moving average (MA).
It has fallen below it three times until now, only to move upwards with strength each time. Furthermore, these lows coincided with the curved ascending support line and a previously significant resistance area, which the price retested as support the second time around.
Currently, the price has fallen below the 200-day MA, is at the ascending support line, and is at the 24,000 satoshi support area.
The possibility of the upward move is supported by the short-term time-frames, which shows that the LINK price has created a descending wedge, which is considered a bullish pattern. Along with the bullish divergence in the RSI, this suggests a breakout is expected.
Future MovementAs for the future movement, if the LINK price again acts in a similar manner, it will eventually break out above the 36,000 satoshi resistance area. A likely target for the end of this movement would be 58,000 satoshis — which, judging by the ascending support line, could be reached in July 2020.
However, the double top was combined with a bearish divergence in the weekly RSI. Divergence in such high time-frames often indicates a correction. Therefore, placing a stop loss below 22,000 is recommended in case the price reverses and breaks down from the support line.
To conclude, the LINK price has reached a significant support level. A similarity to the previous movement suggests that the price will make another attempt breaking out above 36,000 satoshis. A price decrease below 22,000 satoshis would invalidate this possibility.
The post Link’s Accelerating Increase Could Push It to a New All-Time High appeared first on BeInCrypto.
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