LINK Breaks Out From ResistanceThe LINK price has been moving downwards since it reached a high of $20.71 on Aug 17. The fall followed a descending resistance line and continued until the price reached a low of $7.28 on Sept 23. LINK has been increasing since. On Oct 9, the price broke out from this resistance line and continued moving upwards until it broke out above the $9.80 resistance area a few days later. Currently, it is in the process of validating this area as support. If the price continues to climb, the next resistance area would be found at $13.20. Conversely, a breakdown could take the price all the way down to $7.30.
Bullish IndicatorsTechnical indicators are bullish and support the previous rally towards resistance.
- The MACD has just crossed into positive territory.
- The RSI has crossed above 50.
- The Stochastic Oscillator has made a bullish cross.
Wave CountCryptocurrency trader @TheEWguy outlined a LINK chart, in which he shows a completed bullish impulse and expects a pullback towards $9.50. Since the Aug 17 high, the LINK price has possibly completed a bearish leading diagonal (shown in black below), which could have been the A wave of an A-B-C correction (in orange), currently in the B wave. The B wave is also taking place inside an A-B-C structure (black), and the price is currently in the C wave. The most likely targets for the top of the C wave are near $12.20 and $13.30 – $13.70, found by the Fib levels of the long and short-term wave A. A closer look at the C wave reveals that the price has completed sub-waves 1 – 4 (shown in blue below) and is currently beginning wave 5. Therefore, unless wave 5 is extremely short, the $13.30 – $13.70 area is more likely to act as the top. To conclude, the LINK price should rally towards the closest resistance area before possibly falling to new lows. For BeInCrypto’s Bitcoin analysis, click here! Disclaimer: Cryptocurrency trading carries a high level of risk and may not be suitable for all investors. The views expressed in this article do not reflect those of BeInCrypto.
In line with the Trust Project guidelines, this price analysis article is for informational purposes only and should not be considered financial or investment advice. BeInCrypto is committed to accurate, unbiased reporting, but market conditions are subject to change without notice. Always conduct your own research and consult with a professional before making any financial decisions.