ChainLink Retraces After All-Time High: Will the Price Reach a New One?

Chainlink (LINK) Highlights

• There is support at 36,000 satoshis.
• The LINK price is following a parabolic ascending support line.
• A golden cross has transpired.
• The price is following a short-term ascending support line.

Cryptocurrency trader @tradingtank outlined a LINK chart that shows an important moving average (MA) that has been providing support on the entire LINK increase. He believes the price will rebound once it reaches it. The MA is currently at 37,000 satoshis.

$LINK 4H 200EMA has been providing some nice support along the way. Looking for a rebound there again. pic.twitter.com/za5h8zIYjz

— Trading Tank (@TradingTank) February 25, 2020

Will the LINK price get there? If yes, will it reverse once it does? Continue reading below if you want to find out.

Parabolic ChainLink Increase

LINK’s price movement has been characterized by a parabolic ascending support line in place since December 2017. On July 2, 2019, the price reached a then all-time-high price of 39,500 satoshis but began a more than six month period of decrease. Afterward, the price successfully broke out above this resistance area on February 11, 2020. The increase continued until LINK reached a high of 48,766 satoshis five days later. The price has yet to decrease and validate the breakout level as support.

Ascending Support Line

The LINK price has also been following an ascending support line since January 7. However, since the breakout, it has moved way above this support line and has not touched it since February 7. A bullish cross between the 50- and 200-day moving averages (MAs) has transpired previously and the price is trading above both MAs. A price decrease to the breakout level at 36,000 satoshis would serve to validate the 50-day MA and/or the ascending support line. This decrease would also serve to reach the 37,000 satoshi target outlined in the tweet. In the short-term, there is a possible trading range between 37,000 and 40,500 satoshis developing. The price just broke down from the latter and is in the process of being rejected once more. If the price fails to flip this area, which seems likely, it is expected to decrease and reach the support area. While the short-term RSI has not generated any bullish divergence, it is deep into oversold territory, forewarning a possible reversal. To conclude, the LINK price has been decreasing since reaching an all-time high on February 16. We believe the decrease will continue until the price reaches a low of around 36,000 satoshis.