Coingape - 10/9/2019 12:24:36 PM - GMT (+0 )
- Chainlink races towards $3.0 in renewed bullish momentum.
- High trading volume and expanding volatility present increasing trading opportunities.
Chainlink defiantly rose against all the odds in the lethargic cryptocurrency make to record gains in the excess of 20% on Wednesday. Over the past four days, the crypto’s trading volume has ballooned from $96 million to the current $287 million. LINK’s market cap also increased significantly in the same period from $688 million to levels slightly under $1 billion.
Meanwhile, the price is teetering at $2.81 after retracing from $2.95 (intraday high). The incredible recovery is a continuation of the marvelous performance displayed for over a week now. The mundane and consolidating phase seen across the month of September resulted in a breakout above the moving averages. Moreover, the 50 MA on the two-hour chart cross above the 100 MA at $1.7294 October 2 suggested that LINK was going to seek a higher consolidation level.LINK/USD 2-hour chart LINK/USD price chart by Tradingview
Consequently, the widening gap between the 50 SMA and the 100 SMA means that the display of fireworks is not over. Besides, the Relative Strength Index (RSI) is still pointing upwards towards 80. On one hand, if the upward movement progresses, LINK could pierce through $3.0. On the other, a retreat of the RSI due to overbought conditions will signal a reversal move.
The current bullish trend is supported by high volumes as mentioned. In addition, high volatility levels provide numerous trading opportunities.
An accelerated trendline is in line to offer support in addition to the support at the 61.8% Fib retracement level taken between the last swing high of $2.95 to a swing low of $1.53. other support areas include $2.2, $1.8 and $1.6.LINK Key Technical Levels
Spot rate: $2.87
Support $2.2, $1.8 and $1.6
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John is a talented writer with over two years of experience actively contributing to the cryptocurrency industry by providing credible, interesting and easy to read the content. His main focus is on cryptocurrency price analysis and industry news coverage. Lets follow him on Twitter at @jjisige