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