Chainlink(LINK) – Dormant Volcano which is Preparing for Eruption

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Chainlink(LINK) - Dormant Volcano which is Preparing for Eruption

The new year gave the LINK market a second wind and aroused investors’ hopes. After a sharp fall on 23 December, buyers managed to recover and take matters into their own hands.

The signal of buyers’ interest in the market was the maintenance of the range $10.6-11 on 31 December. The formed consolidation ended with sellers’ depletion and a successful counterattack and breaking the mark of $13. Now the main problem of buyers is the range of $16.2-17.2.

On a positive note, LINK trading volumes have finally started to increase. According to Coinmarketcap the current level of daily trading volumes is similar to the volumes at the end of November.

During this period, buyers set a local high, after which the correction began. Although LINK has taken the leading position in terms of daily trading volume to the Uniswap (UNI) project, we believe that the surging time of the project is still ahead.

LINK
Source: Trading view

Whoever wins the range of $12.6-13 will be the king

In fact, a fierce struggle for the range of $12.6-13 has been going on since 6 November. If you look at the chart, it is in this range that the main liquidity of the coin is concentrated.

This range is considered the middle of consolidation. And control of this zone will give a strong push to start a new momentum of the LINK price.

Therefore, full control of the range $12.6-13 will be confirmed after its retest. In our opinion, this will be the last starting point of LINK before updating the historical high and the test of $25.

Positive mood of Chainlink (Link) also confirms the monthly chart:

LINK

After setting a new historical high of $20.11, the LINK market was absorbed by consolidation. For 5 months, sellers were unable to arrange a deep correction.

The current market situation is very similar to 2019. Then, in June buyers also set a historical high and for 9 months there was a set of new long positions.

The LINK/BTC pair chart hints at a reversal

The main push for Chainlink (LINK) may happen during the start of a new growth wave on the LINKBTC chart:

LINK

Despite the fact that sellers managed to break the global trend line of buyers – the chart shows signs of reversal. Even the price growth to 0.00069 will drastically change the situation.

Given that, BTC does not give signals of correction, starting next week, investors can see a revival of good old growth traditions in the LINK market.

The range of $12.6-13 loss will continue the protracted consolidation of the LINK price. Nevertheless, if buyers have serious plans – to lose control of the mark $10.6, in any case, is impossible.

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Peter Oleshchuk

Peter is a crypto analyst who after getting acquainted with the cryptocurrency market in 2017, immediately transferred it to the friend zone. Peter's passion is analysis and forecasting of the cryptocurrency market, including the DeFi space. In his articles you will find accuracy and prudence.

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