Should you buy ChainLink ahead of a potential breakout? Here’s what the charts say

By: Ansh Rathod
Ansh Rathod
Ansh is a tech geek and loves to stay up to date with all the different innovations in the… read more.
on Oct 14, 2021
  • Link has formed a symmetrical triangle and is now showing signs of a new swing.
  • Once Link breaks out, the first target can be set at $37.
  • A stop-loss below the trendline at $22 can be set.

With Bitcoin (BTC/USD) rapidly approaching $60,000, ChainLink (LINK/USD) could give the much-anticipated breakout and go to new highs. Chainlink was up 6% on Thursday, leading many to question if this is the start of a new rally? Let’s take a look at the charts to identify signs of a rally.

  • Link has formed a symmetrical triangle and is now showing signs of a new swing to the upper trendline, around the price of $31.
  • Link was about to cross its 200-day moving average on Thursday, this could be a huge sign for bullishness in the coming weeks. 
  • A long entry can be taken once the 200-day moving average is crossed, or cautioned investors can enter once a breakout is witnessed.
  • Once Link breaks out, the first target can be set at $37 and a longer-term target above the all-time high can also be set.
  • For investors entering around the $30 mark stop-loss below the trendline at $22 can be set.

A closer look at this weeks chart can be seen below:

  • After a sharp rally on Thursday, the RSI was in the overbought zone suggesting a short pullback before a continuation of the up-move.
  • The price should pull back to around $26, which is a demand zone and the 200-day moving average for Link.
  • Once Link crosses the resistance at $28 it could give a huge move towards the upside.

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Conclusion

Investors who want to take up some risk can enter around $27 and get in early and potentially before Link gives a breakout, however, investors who do not want to take the extra risk can enter once Link gives a breakout above $31.Link should be able to achieve targets of $36 and above without any difficulties.

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