Chainlink (LINK), like most altcoins, hasn’t really had an easy time of it in the last few weeks/months. We are miles away from an altcoin season and the price seems to be falling further and further. Is there still hope for a sustainable breakout? Can we use this area to buy?
Shortly
- LINK chart analysis
- LINK Outlook
LINK chart analysis
Source: Tradingview*
The last few weeks have not been easy for Chainlink (LINK) and the entire altcoin market. While Bitcoin (BTC) is scratching its all-time high, the altcoins aren’t really getting out of their hole.
We also see this with Chainlink. Although we were able to recover from our dump at the beginning of August to just under USD 8, a sustained upward breakout seems a long way off.
We are currently trading again at 11.60 USD. In the 4H chart we currently have a slight upward trend, but this is not accompanied by significant buying volume and is therefore built on thin ice.
Our interim high of just under USD 13 seems very far away despite its proximity. If our yellow uptrend line breaks, the next sell-off could even be upon us.
LINK Outlook
Source: Tradingview*
The picture doesn’t really look any better in the daily chart. Here we have a collapse in trading volume for months. The volume here has been falling continuously since the end of October 2023.
This is not a bullish chart image. Even the sell-off at the beginning of August could not fill our inefficiency at around USD 7.60. At the same time, we have left a large wick with a lot of volume.
So we shouldn’t really rule out another altcoin crash at LINK and mark this area as an opportunity and buying area. If that happens, there could be good places to start here.
This pattern runs through the entire altcoin sector, which is why we strongly advise against Tranig here. This is more about recognizing the pattern and identifying buying opportunities (spot).
Click here for the latest Ripple (XRP) chart analysis.
For a technical analysis of Bitcoin, Ethereum, Gold, other altcoins and current news/events, the author created this video:
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