LINK is currently forming a fairly strong recovery since forming a Higher Low on the Up Trendline so this can be a bullish signal which will be the basis of our analysis this time.
Now, based on data from Coin Market Cap (CMC), at the time of writing, LINK has a market capitalization of $16,137,293,921 and a daily trading volume of $1,490,416,393 which makes this crypto ranked 12th by market capitalization. And if we compare it to 2020, the market capitalization has experienced a very rapid increase as new investor interest in altcoins has increased.
4 Hour Chart Technical
At the time of writing, LINK, which had previously fallen quite deep from its ATH level, had found new footing by forming a Higher Low and has been steadily trying to move higher since then, which forms the basis of market optimism.
In our technical view, the Bulls still dominate in terms of price structure, where the Higher Low level that is formed is strong enough as a Bullish foundation to form the basis of our analysis.
Here I try to describe it in the 4-hour technical chart below:
Based on the picture above, the price has come out of the Down Channel pattern that we have discussed analyzed last week, where in this time frame, the price is forming a new high to continue looking for bullish push to existing high levels, including ATH.
In my view, at this time frame, LINK has a Key Support-Resistance (SR) level that is capable enough for us to use as a handle in validating potential trends, namely at the levels of $ 32, $ 35.17, $ 39.26 and $ 42.
All SR levels in the analysis this time are confirmation points that we see are quite capable in reading market views, where a rejection or break at these levels will be the basis of the Multi-Day trend for LINK.
Daily Chart Technical:
Also, in the medium-term view, the Chainlink token is at time of writing still in a Bullish trend, being still above the Up Trendline and being rejected from it, where the previous Key Support level, $32, has done well to bring the price back above it (Signal daily bullish).
In view of this analysis, the Daily Key Support and Resistance will work as a ‘Validator’ of our efforts to determine the trend, especially in validating the Bullish potential, which we see, it still holds the opportunity as long as the price is able to stay above the Key Support, and is able to move higher than Lock Resistance.
And for the Bearish scheme, the price starts to form weakening signals while moving in the area between the Daily Key SR levels, so that it becomes a signal to be aware of the formation of a Lower High which is the start of a Bearish signal, but we see that the opportunity is still not that big at the time of writing this.
And for the fundamental view, the decline in the last few days is the impact of the actions of the US government which created panic among investors, so the recent recovery took shape when the panic began to subside and there was clarity about the US tax rules which brought funds back into the crypto market.