The cryptocurrency Chainlink (LINK) has seen a major rally recently, with prices surging 60% in just the past 6 days. However, according to analyst Cryptonary, this vertical move may not be sustainable. In a recent tweet thread, they provided technical analysis exploring whether LINK can hold these new higher levels or if a pullback is due.
What you'll learn 👉
Rapid Rally Raises Questions
Cryptonary started by recapping LINK’s stellar short-term performance:
“Cryptonary: LINK surged 60% in 6 days: What’s next? LINK is overbought, but can it sustain at these higher levels here?”
They note that such a rapid, nearly parabolic rise often lacks durability, making a correction likely. But Cryptonary dives into the charts to ascertain LINK’s key support and resistance.
Technical Levels and Indicators Suggest Caution
The analysis highlights how LINK found support at $9.67 to enter the $10 range. But selling pressure emerged around $11, establishing resistance. Meanwhile, momentum indicators like the RSI show overbought conditions after the surge, signaling a pullback could come soon.
As Cryptonary concludes: “We would exercise caution here on LINK. The market, in general, is overheated. And with LINK being up 60% in 6 days and its technical indicators at overbought levels, you should be cautious here.”
While LINK’s strong uptrend could continue, signs point to an imminent cooldown. Cryptonary provides prudent advice not to FOMO in at unsustainable levels. Their nuanced analysis shows the importance of weighing both bullish and bearish signals to make informed trading decisions.
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