Chainlink is the best performing crypto asset of the top ten cryptocurrencies by market cap in 2020, and the years prior since it first came into existence. And although the peak in 2020 could very well be in for now, and a massive rejection just occurred at a pivotal mathematical level, a bullish chart pattern forming would have a target of roughly $32 per LINK if it breaks to the upside.
LINKUSD Rejected At 0.618 Fibonacci Retracement Level, Triangle Forms
After Chainlink charged headfirst into $20, the assets current peak, its been reeling since. Bitcoin set a new higher high for 2020, but the once-unstoppable cryptocurrency altcoin Chainlink has been much weaker by comparison.
A nearly 60% plunge from $20 to just $8 was bought up fiercely from crypto investors hoping for a second wind or for a long-term hold. Those that did so, are still well in profit after LINKUSD surged from $8 to $13 at the peak.
Chainlink rejected at 0.618 Fibonacci retracement level | Source: LINKUSDT on TradingView.com
A strong rejection at the 0.618 Fibonacci retracement level, however, could send the altcoin tumbling further.
Fibonacci retracement tools are used to find potential support and resistance areas, which can act as reversal points. When an assets price touches the order block acting as resistance, a rejection sends the asset back to retest lower.
Thats exactly what is happening on the LINKUSD trading pair. The latest rejection might have revealed a downtrend line – validated with three separate touches – that is converging tightly with a lower trendline that sent Chainlink parabolic in mid-2020. The converging trendlines have formed what appears to be a symmetrical triangle– a bullish continuat ...
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