LINK Analysis – The End of the Retracement? – CryptoNews

Dear readers, hello. Here Romain, for a technical review around the price evolution of the LINK cryptocurrency of the Chainlink project. What are the major technical supports? is a rebound still possible? What evolution compared to Bitcoin? A full analysis…

Founded in 2017, the Chainlink project is an abstraction layer that connects smart contracts. Through a decentralized oracle network, Chainlink offers them the ability to securely interact with external data feeds, events and payment methods. It does this by providing the critical off-chain information necessary for complex smart contracts to become the dominant form of digital agreement.

Chainlink- Quick zoom on the project

The Chainlink network is powered by a large open-source community of data providers, node operators, smart contract developers, researchers, security auditors, and more. The company ensures that decentralized participation is guaranteed for all node operators and users who wish to contribute to it.

It is one of the first structures to enable off-chain data integration into smart contracts. And, with many trusted partners, Chainlink is one of the leading players in the field. Because of this, it has caught the attention of many trusted data providers, including Brave New Coin, Alpha Vantage, and Huobi. Because the latter can sell data access directly to Chainlinkthereby monetizing the information they have.

LINK – Monthly chart: A paused bullrun

What this long-term chart tells us is relatively clear: the prices of the cryptocurrency LINK took advantage of a bull market to soar to a new high established at just over $52. Suffice to say that the expression “To the moon” has never been so true for this tokenwhich cost only… $0.14 at the start of its introduction.

In monthly time unit, it is possible to see a formation in 5 minor waves. That is to say the establishment of a major wave 1. These are followed by a retracement which will unfold in three waves (A, B, C) to form the second major wave. And right now we are at the beginning of this period of correction.

LINK technical analysis
$LINK monthly chart

So what are your goals for this first period? The Elliot Wave Theory gives two points as objectives, located at the 38.2% and 61.8% retracement of Wave 1. And currently the LINK cryptocurrency is in the midst of a struggle on the first major support which is at $7.11. So, in case of closing above this level for the monthly candle, the probability that wave A will end is very important.

From an Ichimoku point of view, not much to say about this unit of time. Of course, prices are in negative territory due to their presence below the monthly Kijun. However, the LINK cryptocurrency does not have enough history to have a monthly cloud. This would provide additional information for this analysis. Nevertheless, the Lagging Span will have to be watched. Because its closing for this month of June will confirm, or not, the rebound on price support on the level mentioned above.

LINK – Weekly chart: A rebound, yes but when?

To follow up on the monthly chart, Ichimoku confirms here that prices have started their decline since the beginning of 2022 by breaking their weekly Kijun. With a weekly RSI following this trend. And is not showing any signs of weakness, aside from a small bearish divergence that encompasses the past three weeks.

LINK analysis
$LINK Weekly Chart

With prices having found support on the Fibonacci ratio and a former top at $4.90, this downtrend can be put on hold at least for the next few weeks. And the big unknown will be whether prices will enter a technical bounce.or in a range of several months, while waiting for positive signs from the market…

A first positive sign will be given when the weekly Tenkan, which has blocked prices since January 2022, will be broken. Also, watch out for the weekly SSB dish. Because it is a strong level of resistance, located at $10.60, which will block them in their rebound. On the other hand, if this resistance gives way, the rise to $18 will be the next big steprepresented by the weekly Kijun.

LINK – Daily Chart: Waiting to go higher?

The contact with the Fibonacci ratio caused some rebound, and now a short term range. Indeed, since May the prices of the cryptocurrency LINK no longer evolve in trend and remain in a certain expectation. Which remains quite positive when we know the evolution of the market since this month of May.

Link Analysis
$LINK daily chart

For this situation the MACD indicator shows a bullish divergence (yellow dotted lines). But also a drop in trading volumes in recent weeks. However, a real bullish signal will be given by the return above the negative territory in which the moving averages are located.. For prices, this corresponds to a breakout of the daily Kijun as well as the daily cloud. This will be really positive and would confirm the neutrality in which the prices are.

To note : the weekly support represented by the weekly SSB is always the main support in the event of a reversal.

LINK – The evolution of the LINK/BTC pair: The rebound against the king

The chart of the LINK/BTC pair is still encouraging. And he is clearly different from the others, since it allows to observe the evolution of the value of the cryptocurrency LINK against Bitcoin. With prices breaking the daily Tenkan, after a perfect bounce off the weekly SSB support. And a Kijun which now represents the next objective. However, it is still important to note that the former minor highs and lows are causing some problems during this rally. To the point of being able to call it a zone of turbulence.

Technical LINK Analysis
$LINK/$BTC pair

To end on a positive note, the rally in LINK cryptocurrency prices beyond the weekly Kijun will open the door to seek out the weekly cloud. As a result, this would make it possible to question its decline from a medium-term point of view, in this relatively sad market.

Thank you for following this review. And I’ll tell you next week to dissect another cryptocurrency.

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LINK Analysis – The End of the Retracement? – CryptoNews

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