A bullish chart pattern forming would have a target of roughly $32 if Chainlink price breaks to the upside
Chainlink is the best performing cryptocurrency among the top ten cryptocurrencies by market cap in 2020 and previous years. And even though the peak in 2020 is most likely right now and a major rejection happens only at the critical math level, forming a bullish chart pattern will target around $ 32 if Chainlink price breaks in the uptrend.
Chainlink price declined at the 0.618 Fibonacci retracement level
After Chainlink hit a high of $ 20, LINK prices have been spinning since then. While Bitcoin is setting new highs higher in 2020, it seems like Chainlink cannot hold back its ever stronger decline.
A drop of nearly 60% from $ 20 to just $ 8 has inadvertently demonstrated strong buying pressure from investors. For those fast-paced, they still have a good profit after LINK price increased from $ 8 to $ 13.
Chainlink rejected at the 0.618 Fibonacci retracement level | Source: TradingView
However, a strong rejection at the 0.618 Fibonacci retracement level could cause these altcoins to plunge further. The latest rejection may have revealed a downtrend line – confirmed by three separate touches – tightly converging to a lower trendline – which pushed Chainlink parabolic volatility in mid-2020. The converging trend lines have formed a symmetrical triangle – a pattern that continues to rise in price.
The symmetrical triangles are usually bullish continuation patterns, signaling a bullish advance. However, they can be “broken” to a great extent. Using the rule of measurement, taking the formed symmetrical triangle’s width, and applying it to an estimated breakout point, we can see a 150% increase up to $ 32.
Triangle target would line up with 1.618 Fibonacci extensions | Source: TradingView
Meanwhile, we also have to pay attention to the 1.618 Fibonacci extension level. Fibonacci levels are the price ratios of an asset-based on a series of numbers, where each number is the sum of the previous two numbers. For example, 3 is the sum of 1 and 2. The 0.5 and 0.618 Fibonacci levels are especially important for trade since this is when the asset’s price crosses it, its ability to recover and reach a level of new highs. In contrast, a level of rejection could mean a new low.
If Chainlink can turn back above the 0.618 level, it could head towards the next 1.618 extensions.
You can see the LINK price here.
- Chainlink Price Also Forming A Pennant/Triangle Pattern That Seems Poised To Break To The Downside
- Chainlink Price Nearing The Apex Of A Pennant Formed In The Time Following Its Decline From $20, A Move Past $16.00 Is Imminent In The Near-Term