The last two trading weeks in the Chainlink LINK market were shocking and ended with a test of the upper trend line of the global price growth channel. By testing the range of $48-50, buyers were able to achieve the target we wrote about in our previous article.
If we analyze the LINKUSDT chart on the daily timeframe, we see that during these 2 weeks the trading volumes were usually average:
Significant problems for buyers began on 4-5 May, when the LINK price just began to approach the global trend line. As we can see in the chart, the trading volumes during these two days were much higher even than the volumes on 14-15 April.
This fact shows us that sellers are confidently forming a liquidity range for sales and a foundation for starting a correction in the LINK market.
Range of $41-42 is Strategically Crucial for Growth Trend Continuation
To thwart sellers’ plans, buyers need to keep control of the local range of $41-42. If we see a narrow consolidation in this range in a few days, it will be a good signal to accelerate the LINK price growth and to break the global growth channel up.
However, unsuccessful attempts by buyers to keep this range will become the beginning of the LINK correction with the first target of $34-35.
The main reason for the confident LINK price growth was the LINKBTC pair chart. While the Bitcoin price for 2 months is almost trampled on the spot:
Transfer of Bitcoin to Chainlink LINK Market Remains Prime Reason for Successful Price Growth
In the chart we published in the previous article, buyers managed to break out of the correction fall channel. Then they continue to grow to the liquidity range of 0.00093-0.001.
Investing Bitcoins in the Chainlink project is a great sign for continued growth. Though, the level of BTC dominance has fallen so much that at any moment can begin the transfer of capital back to Bitcoin.
The main problem is that the favorable moment for altcoins, including LINK, is right now when BTC is in place. A sharp growth wave before the historical high update or a powerful falling momentum will bleed other crypto projects.
Therefore, it is worth realizing that now the entire crypto and DeFi markets are at their peak. And one careless movement can easily overthrow all the achievements that have been built for so long.