Trade Recommendation: ChainLink

ChainLink

Our June 1, 2019 trade recommendation for ChainLink (LINK/BTC) hit its target. On June 13th, the market climbed as high as 0.00024267. Those who followed the trade plan grew their investments by over 127% in as little as two weeks.

ChainLink is one of those rare altcoins that has decoupled from Bitcoin. What this means is that the price action of the crypto token does not rely on Bitcoin’s movement. For instance, its valuation against the leading cryptocurrency steeply rose from late June to early July 2019.

With this knowledge, we can simply focus on ChainLink’s price action without worrying about what Bitcoin might do next. Looking at the daily chart, it looks like the cryptocurrency is almost ready for its next move up.

Technical analysis shows that LINK/BTC continues to be bullish. The recent selloff is something that we expected. ChainLink has skyrocketed from 0.00010666 on June 4th to as high as 0.000395 on July 2nd. That’s a massive growth of over 270% in less than a month. Therefore, a 40% drop is actually healthy for the long-term sustainability of the market. The good news is that ChainLink appears to be showing signs of strength near a key support area.

Today’s daily candle has a long wick below the body to indicate the presence of sellers. Also, the market appears to have quickly bounced when it got close to support of 0.000225. This is an indication that bulls are buying the dip.

The strategy is to buy on dips as close to 0.000225 support as possible. As long as the market is above this level, we expect bulls to touch our target of 0.000348.

The process may take less than a month.

Daily Chart of ChainLink/Bitcoin on Binance

ChainLink crypto chart
As of this writing, the ChainLink/Bitcoin pair is trading at 0.000237 on Binance.

Summary of Strategy

Buy: As close to 0.000225 as possible.
Targets: 0.000348
Stop: 0.000215

 

Disclaimer: The writer owns bitcoin, Ethereum, and other cryptocurrencies. He holds investment positions in the coins but does not engage in short-term or day-trading.
Featured image courtesy of Shutterstock.

Kiril is a CFA Charterholder and financial professional with 5+ years of experience in financial writing, analysis and product ownership. He has passed all three CFA exams on first attempt and has a bachelor's degree with a specialty in finance. Kiril’s current focus is on cryptocurrencies and funds, as he does his own crypto research and is a Product Manager at Mitre Media. He also has his personal website, InvestorAcademy.org where he teaches people about the basics of investing. His ultimate goal is to help people with limited knowledge of finance and investments to create investment portfolios easily, and in line with their unique circumstances.