Will LINK Be Able to Approach Its All-Time High?

The decrease was very swift, and the price reached a low of $1.36 the next week. It has been moving upward since, but has yet to reach its all-time highs. This movement has created a very broad range, which was outlined by Bitcoin and altcoin trader @Traderx0x0, who tweeted a LINK chart that shows a trading range between $3.85 and $1.55; the price is right at the resistance of this range.  Once the price is rejected by the resistance line, he is predicting an accelerated rate of decrease towards the support line of the range.

He also stated that while LINK is likely to go down, the BTC movement is likely to determine its direction. In this article, we will take a closer look at the LINK price movement and determine if it will actually decrease or if it will move towards a new all-time high.

Ascending Support Line

The LINK price has been following an ascending support line since it reached a bottom on March 13. However, the rate of increase accelerated on April 8 and the price did not touch the support line again until May 10. At the time of writing, the price was trading very close to the $3.5 minor support area, where it has been trading since April 20. The RSI movement above and below 50 during this time is indicative of consolidation, meaning that the price does not have a trend with a clear direction. If the price were to break down from this ascending support line, there is a lack of support until $2.7. In order to determine if it will do so, a look at a higher time-frame is necessary.

Long-Term Range

The weekly chart shows a long-term range, with resistance and support at $4.1 and $1.75, respectively. This range is very similar to that outlined in the initial tweet. Indeed, it seems that the price will get rejected by this resistance line and go down. There are several reasons for this. First, the price has moved considerably above this resistance, only to fall right back. Second, there are numerous long upper wicks and dojis being created after an upward move, which are signs that the move has lost its strength. Finally, there is the $3.8 area, which previously acted as support and has now turned to resistance. The combination of these factors make it likely that the price will decrease, initially towards the midpoint (EQ) of the range at $3 and possibly towards the support line at $1.75.

To conclude, the LINK upward move seems to have reached a top, and a price decrease is expected. The $2.7-$3 area holds numerous support levels that could initiate a reversal once the price gets there.