Crypto Update: ChainLink Uptrend Remains Strong
ChainLink (LINK/BTC) belongs to a special group of altcoins, which includes Ripple (XRP/BTC) TRON (TRX/BTC) and WAVES (WAVES/BTC). While most cryptocurrencies including Bitcoin (BTC/USD) are in a strong downtrend, these coins have found the strength to go against the current. They’ve managed to keep their bullish momentum intact despite massive selloffs over the last few weeks.
This resiliency is the primary reason why we’ve taken a huge interest in ChainLink. Unlike other cryptos that would go in a parabolic run and then pop, ChainLink appears to be in it for the long haul. If LINK/BTC continues its pace, we won’t be surprised to see an all-time high in the first quarter of 2019. In this article, we reveal the reasons why ChainLink’s uptrend remains strong.
Parabolic Curve Remains Intact
On our October 31, 2018 crypto update, we noted that ChainLink is showing parabolic potential. At that point, LINK/BTC was trading at 0.00007. In about two weeks, the market grew by over 40% as it climbed as high as 0.0000999. The price action validated our call and showed that ChainLink is parabolic.
While the market is currently correcting, it appears that the parabolic curve remains solid at least on the longer time frame. A look at the weekly chart reveals that the market’s parabolic run is alive and well.
Weekly chart of LINK/BTC
We believe that ChainLink will continue its bullish momentum as long as it trades within the curve. This assumption is supported by bullish patterns on both the longer and shorter time frames.
Formation of Bullish Higher Lows
Another reason why we think ChainLink’s uptrend remains strong is the formation of bullish higher low setups.
If this was a true distribution and the end of the uptrend, you would notice volume upticks during selloffs while the volume would remains anemic during bounces. This is not the case in ChainLink’s chart. In fact, it is the total opposite; since volume spikes when the market bounces and volume declines when ChainLink pulls back.
With demand staying significantly stronger than supply, ChainLink has managed to establish bullish higher low setups.
Higher lows on the weekly
The first higher low of 0.000058 is crucial. It has kept the market’s uptrend alive. The second possible higher low of 0.000073 may be a game-changer. It might signal the end of consolidation and a resumption of an uptrend.
Emergence of an Inverse Head and Shoulders Pattern
Right now, bottom pickers and momentum traders are hoping that ChainLink establishes a bullish higher low at 0.000073. If it does, the inverse head and shoulders structure on the daily chart is on the menu.
Inverse head and shoulders on the daily chart
To help the cause of the bulls, ChainLink is near oversold conditions on the 4-hour chart and it is extremely oversold on the 1-hour chart. The bearish exhaustion on the shorter time frame will likely enable bulls to stay above 0.000073 and establish that very important bullish higher low. If they do, ChainLink can be on its way to a bullish breakout.
ChainLink is one of the few altcoins that has stayed strong despite recent selloffs. Its parabolic curve remains intact as bullish patterns emerge on both the longer and shorter time frames. These are the reasons why ChainLink’s uptrend remains strong. If this continues, we won’t be surprised to see an all-time high in Q1 of 2019.
Featured image courtesy of Shutterstock.