ChanLink at Breakout / Rejection Scenario As It Retests All-Time-High — Price Analysis
ChainLink (LINK) has been a star performing in 2020, just like it was in during 2019 and 2018. Not only has it held its own during the present Bitcoin (BTC) MTF downtrend, but it even managed to set a new, ever so slight new all-time-high (ATH) above the previous one it put in on 16 Feb (depending on exchange). That level is being retested yet again, and there is a high penalty if LINK can’t do it again.
We start on a 3-day LINK/Bitcoin chart, and see that LINK has been counter-trending Bitcoin for almost a month. It has continued to establish higher regional lows and retest the ATH, which it is now grating against. This is all to say that we should not underestimate this altcoin.
On the daily chart, we see that LINK is currently trying for the second time in a month to push clean through the recently established ATH.
We may see this play out today, but there is a decent chance of rejection as well. The daily RSI has formed a prominent bear divergence from price, and the histogram looks pretty tired and flagging in its bullish momentum. Volume has also been flagged between the rallies – although we don’t see this repeated on the USD-paired chart (see below). Therefore, if LINK doesn’t break the ATH today, we could see a pretty rapid selloff.
Comparing this to the daily LINK/USDT chart, we see some similarities but an ultimately different profile. First of all, LINK here is also attempting to break its previous ATH, after being rejected in its last attempt a few weeks ago. We also see here a prominent RSI bear divergence being set up (but not yet valid) if price cannot break above this level.
However, we see that volume here has kept up between the rallies, and that the histogram looks a lot better here as it builds momentum to the upside.
Ultimately, only one of these charts needs to blow in order to pull the other one up. And so far, it almost seems like a 50/50 chance.
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