LINK/USD: Uncomfortable Trend May Increase Nervous Sentiment

Robert Petrucci

LINK/USD is near important mid-term support after seeing a short-term bullish rally vanish suddenly and support levels proven vulnerable.

LINK/USD opens today’s trading near important mid-term support. Current value for Chainlink is within sight of early December values which saw a steep decline displayed when the 23.00000 was proven weak at that time. Yes, LINK/USD did exhibit a solid short-term rally from the end of December until the 11th of January, but speculators may believe this was a trap, particularly as the broad cryptocurrency market again has become nervous.

LINK/USD does a solid job of correlating to its major counterparts and the higher price range established in the second week of November is beginning to feel like a distant memory. Since trading above 38.00000 on the 10th of November, the trend has been bearish. And if a mid-term technical chart is viewed, a price range of 17.00000 to 23.00000 is quite easy to spot from the 3rd of December until nearly the end of the month.

The past couple of weeks have seen LINK/USD stage some bullish activity, but this was performed in lock step with its major counterparts. The past few days of trading have seen conditions again turn rather nervous as support levels have faltered and the broad cryptocurrency market has begun to show signs of being uncomfortable and Chainlink has danced in step with other major speculative asset in the crypto world.

Aggressive traders who believe LINK/USD has been oversold may be tempted to buy at current support levels if they are able to be sustained. However, more cautious bullish traders may want to wait for a serious dose of upside price action to gain momentum, then sincerely break through resistance and maintain prices above levels such as 27.00000 to 28.00000 for a solid duration before pursuing long positions.

The risk reward scenarios within LINK/USD currently seem to offer more volatility to the downside compared to upward trajectories. If current support near the 23.00000 is penetrated lower, traders cannot be blamed for believing the 22.50000 to 22.00000 could be achieved near term.

Selling LINK/USD on slight upturns with entry price orders which ignite short positions may prove worthwhile. The broad cryptocurrency market appears jittery and, if this nervous tension remains a factor, Chainlink may find itself within its December price range seen only handful of weeks before.

Chainlink Short-Term Outlook

Current Resistance: 24.36000

Current Support: 22.76000

High Target: 26.54000

Low Target: 20.72000

LINK/USD

Robert Petrucci
Robert Petrucci has worked in the Forex, commodity, and financial profession since 1993. Important aspects of his work involve risk analysis and advisory services. As an advisor in a Family Office he maintains a conservative approach for wealth management and investments. Robert also works in private finance with investors and companies delivering financial and management services.

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