Market Direction

Is LINK about to take a ride downtown?

Updated: Jul 25, 2024

Published: Nov 3, 2023

While Bitcoin's performance often takes centre stage, LINK has a story of its own to tell. Chainlink looks due for some downside. If we get this move down, it should send Link down to an area for a nice long/buy.

TLDR

LINK appears poised for a potential downside move, offering an opportunity for long-term buyers.
Key technical pattern includes a wedge/bullish pennant, marked by some volatile breakouts and breakdowns.
Critical horizontal support stands at $9.67, a promising area for long-term accumulation.
Medium-term upside targets of $13.38 and $17.74 hinge on Bitcoin's performance.

Disclaimer: Not financial or investment advice. You are responsible for any capital-related decisions you make, and only you are accountable for the results. “One Glance” by Cryptonary sometimes uses the RR trading tool to help you quickly understand our analysis. They are not signals, and they are not financial advice.

Technical analysis

Chainlink formed a wedge/bullish pennant pattern despite some ugly wicks moving out of the pennant. We’ve seen some ugly breakout and breakdown attempts, but price has not done much.

The horizontal support beneath price is $9.67; this is an area we would look to buy/DCA for the long term.

The upside in the medium term could be $13.38 and then $17.74. However, this would most likely require BTC to go meaningfully higher.

LINK 1D

RSI and funding rates

The RSI is coming off significantly overbought territory and is back at the 68 level. We have formed 3 bearish divergences, which have probably prevented price from going higher in the short term. This is what could catalyse a further move lower in the short term.

In terms of Funding Rates, it’s positive but not unhealthily positive. Open Interest, however, remains extremely high, which suggests that in the short-term, this is still somewhat overheated here.

Cryptonary’s take

We would like LINK if it retests the $9.67 level. We think this can come because LINK has seen 3 bearish divergences play out while having a very high open interest level. Long story short, there can be some flush-outs in the short term.