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Chainlink long-term price analysis: August 24

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Link long-term price analysis: August 24
Source: Pixabay

Chainlink aka Link’s run from March to August has been good, especially in terms of its price appreciation. The cryptocurrency went from being valued at less than $2 in March to being overvalued at $20. This exponential rise came at a time when defi was soaring. In part, the defi craze has to be the reason why most altcoins rallied.

What lies ahead for LINK?

LINKUSD TradingView

Important levels for Link include a resistance zone ranging from $18.76 to $17.76, followed by support at $14.73, $10.95 [which is also the 0.236-Fibonacci level].

It should be noted that Link’s overenthusiastic rally hit a ceiling at $20 and what’s coming is the retracement to balance out the surge. Since the peak, there has been a 38% retracement. However, at press time, it has reduced to 27%. The price was contending with support at $14.73, failing which, will push the price down the aforementioned support zone. This might put the Link’s value at half of its peak – $10.44.

RSI indicator showed a double top formation [a reversal pattern] while the price doesn’t. At press time, however, RSI is close to neutral zone, indicating the exhaustion of buyers.

The price looks to have a bounce in it, the question is when the price will see this bounce? At the current support at $14.73 or at the support zone at $10.44 and below? Considering the possibility of price dropping lower due to decreasing RSI, we can expect link to head lower, at least by 16% to 25% in the upcoming week.

One good thing about Link is its low correlation with the rest of the crypto market. 90-day Pearson correlation showed that it has dropped to levels last seen during the peek of June-2019 bull run.

Source: Coinmetrics

Link is not the only coin that seems to be catching a break, the same is with ADA, another fan-favorite coin. Although there are some coins like LTC and XRP that still show potential surges in the near future.

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Akash is a full-time cryptocurrency writer and an analyst at AMBCrypto. He is an engineering graduate with an avid interest in finance and economics. Attracted to the chaos of trading, Akash has invested in BTC, ETH and XRP for educational purposes.