Chainlink (LINK) Pumps to New All-Time High in a Bullish Resurgence
- Chainlink reached an all-time high price on Jan. 25.
- LINK is likely in wave five of a bullish impulse.
- LINK/BTC has broken out from a descending resistance line.
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Chainlink (LINK) reached an all-time high price on Jan. 25 but has fallen back slightly since.
Technical indicators are still bullish and suggest that Chainlink is expected to continue increasing to reach even higher.
Chainlink All-Time High Price
On Jan. 15, 2021, LINK broke out above the previous all-time high. It returned to validate the level as support and proceeded to increase towards the current all-time high price of $25.78 reached on Jan. 25.
The re-test of the breakout area left a long lower wick — a sign of buying pressure. It also validated the $20 area as support.
Despite a considerable bearish divergence in the weekly RSI, technical indicators are still bullish.
The RSI has just crossed above 70, the MACD is increasing, and the Stochastic oscillator has made a bullish cross.
The daily chart helps to isolate the support area near $20 since that is the level which it initially re-tested. Chainlink went on to deviate below this level but managed to reclaim it.
Similar to the weekly time-frame, technical indicators are bullish despite a bearish divergence in the RSI. If LINK were to drop in the short-term and generate a hidden bullish divergence, it would likely confirm the trend continuation.
Nevertheless, as long as LINK does not close on the daily below $20, it’s likely that the trend is bullish.
Cryptocurrency trader @TheEWguy outlined a LINK chart, stating that it’s likely to decrease in the short-term before beginning another significant upward movement.
The most likely wave count suggests that LINK is in wave five of a long-term bullish impulse that began in January 2019 (shown in white below)
The most likely target for the move to end would be found between $27.73-$27.85. This range is the 1.61 external Fib retracement of wave 4 and the projection of the length of waves 1-3 to the bottom of wave 4.