- LINK has endured a 60% correction, but a jump to $12 or beyond is possible
- The correction followed a mammoth rise in August
- Long term LINK is a good option, with $4 a strong buy zone
Chainlink (LINK) enjoyed an extraordinary August, but the past five weeks have seen it retrace many of its huge gains. However, after such a retracement it has enjoyed a short term bounce to $10, with more possibly on the cards, and we outline the key levels to watch for those wanting to play LINK for the short term.
LINK’s 60% Correction
LINK made headlines last month as it enjoyed huge success, pumping from $8 to $20 in the space of a little over two weeks:
This rise was fueled in part by the antics of Zeus Capital and the exposure granted the coin by Dave Portnoy, all of which helped to pump it to stratospheric levels.
Since topping out at $20 however the coin has been on a sharp downtrend, losing 60% in the past six weeks or so, with the huge correction coming as no surprise to those with experience of the crypto markets.
The move has left us with very clear areas of resistance that LINK must cross if it is to be considered in an uptrend scenario:
As we can see, it bounced at the weekly support level, from which we saw a relief move yesterday to the previous resistance around the $10 mark. The chances of breaking through this resistance level are slim however, and it is much more likely that we reject from it and continue lower, potentially through the current weekly support to monthly support levels:
Should LINK break above this $10 resistance line and turn it to support however we will be looking at the next resistance which sits at around the $12-$13 dollar range. A break of this would be bullish and would suggest that LINK is ready to test new highs, but after such a huge move this is highly unlikely.
Long and Short Term Potential
Long term there is every chance that LINK will perform well, but no coin goes up forever, and a correction to match the rise was predictable. A return to the $4 support range would represent a fantastic buying opportunity, although those looking for a short term trade might play the relief bounce here.
