Chain Link (LINK) remains one of the best performing cryptocurrencies of the past 12 months. As of January 23, LINK is now larger than Litecoin (LTC) and is now in seventh with a market capitalization of $ 9.2 billion, after surpassing Bitcoin Cash earlier this week.
LINK's price hikes also coincided with rumors this week that Grayscale is preparing to add the Chain Link Trust product. And it is possible that this news event played a role in the rise in the price of ChainLink to an all-time high, making LINK, once again, one of the best performing cryptocurrencies.
What is the main support level?
According to the Queen Telegraph, the daily chart for Chen LINK has shown huge volatility in recent months, but also some nice price action. Each previous resistance level has been reversed for support, after which the price has continued to rise almost as standard. This is the beautiful nature of price action and trading in general.
and most people are motivated to enter trades when the price is rising. But these support / resistance swings actually give the best entry points. Specifically, the first support / resistance reversal occurred at $ 10, after which the same thing happened with $ 13 and $ 17.30.
Therefore, the critical level to watch for further potential downside is the $ 17.30 zone, plus the $ 19.50 area. This last area is the previous all-time high in 2020 and may be the next reversal point of support / resistance, which will be bullish for further upside.
Potential Chainlink price peaks to watch out for
As ChainLink is in the price discovery stage, it becomes difficult to identify the next potential points of interest for higher structures. However, the Fibonacci extension tool is very useful for traders to identify these areas.
With this indicator, the first zone is between $ 29-31, which corresponds to each of the Fibonacci extensions. The second region is at the Fibonacci extension of 2.618 at $ 39 and the last at the $ 42 region.
However, the next impulse is likely to see a significant uptick in the Bitcoin (BTC) pair for LINK. Bitcoin led the recent rally, while altcoin pairs versus Bitcoin were relatively flat.
