LINK, Interest in the coin significantly has grown
During the previous trading week, LINK pleasantly surprised its investors.
From the previous article, the LINK price rose by almost 40%, breaking the local downward trend. No matter how weak buyers looked last week, they managed to keep the LINK price above the local range $8.71-8.85.
In the previous article, we noted the high probability that LINK will continue to fall to $7. However, the sharp crypto market reversal as a whole had a positive effect on this coin. In addition, LINK news background last week was not stingy on events. For example, the Ren protocol started cooperation with Chainlink to develop the Proof of Reserve mechanism.
Buyers’ strength is in the range $9-9.4
To successfully continue the local growth trend, buyers need to keep the range $9-9.4 under their control. At the moment, the trend line is in this range. By fulfilling this mandatory condition, buyers will have a chance to reverse the downward trend from August 2020. The main critical point for this scenario is the range $12.4-13:
The main question at the moment is whether Link will have time to update the local high, before the fall to the range $9-9.4?
Looking at the coin more globally, it is obvious that buyers have a clear plan to try to get in the range $12.3-13 without lowering the LINK price below $10.6.
For the third day, sellers are passively trying to break this local level down and so far without success. Therefore, for a new local upward impulse, buyers need to meet two conditions tomorrow:
- Closing today’s daily candle above $10.6;
- The trading volume should not exceed the volume of the previous two days.
If the LINK price fixes below $10.6 it will give sellers a chance to accelerate the fall to $9-9.4.
As we can see in the chart formed an ascending wedge, in which each subsequent growth impulse occurs at lower volumes. Although last week was a finest hour for buyers. Globally, the fall wave from 14 September looks more confident than the current attempt to grow.
Therefore, the target $7 we wrote about in the previous article is not canceled. It is transferred in time.
Charts courtesy of Trading View