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On September 13, 2019, the Chainlink price reached a low of 14,778 satoshis. A rapid increase followed, and the price reached a high of 15,900 satoshis during the same day. Afterward, LINK reached similar highs on September 14 and 15. It has been decreasing since.
Where will the LINK price go to next? Keep reading below to find out.
For our previous analysis, click here.
A look at the daily chart shows that LINK is trading inside a significant support area, which is found at 15,000 satoshis.
The area recently acted as support on June 2019, initiating the upward move that reached highs above 40,000 satoshis.
Let’s take a closer look at price movement and decide whether this support area will hold.
Looking at the six-hour time-frame, we can see that the price has been making a series of higher lows.
The creation of a higher low is the first step in the initiation of an uptrend.
Additionally, as evidenced by the long upper wicks, we can see that a resistance area is forming around 15,900 satoshis.
While both lines are not entirely clear, the price movement has the resemblance of an ascending triangle, which is considered a bullish pattern, making price breakouts more likely.
A look at the RSI suggests that the price will soon breakout from this pattern.
While the price has made a similar high on September 14 15 and 17, the RSI has crept our of oversold territory and is moving upward with strength.
This reinforces our belief on the force of the uptrend.
Additionally, we can see by the moving averages (MA) that the price is already making an attempt at moving above them.
The price has already moved above the 10-period MA and is close to the 20-period one.
On September 15, the price was rejected once it reached it.
If the price were to move above the moving averages, it would likely use them as future support.
While a bullish cross has yet to occur, it has already done so shorter-term time-frames.
If the price breaks out, one resistance area is traced below.
It is found near 16,600 satoshis.
We believe the price will eventually reach it.
The LINK price is possibly following an ascending support line.
According to our analysis, it is likely to increase towards the resistance area of 16,000 satoshis.
However, due to the price not being close to the support line, we could not identify a profitable trade setup.
Do you think LINK will reach the resistance area? Let us know in the comments below.
Disclaimer: This article is not trading advice and should not be construed as such. Always consult a trained financial professional before investing in cryptocurrencies, as the market is particularly volatile.
Images are courtesy of Shutterstock, TradingView.
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