The trading month on the LINK market went completely according to the buyers’ plan. The LINK price continued to move confidently in the global growth channel and test the mark of $44. This buyers’ achievement and the confident price keeping during 16-25 April correction ensured a positive continuation of the price growth in May. At the time of writing, the new high set by the LINKUSDT price is $51.2. We wrote about this target in our previous idea.
Range of $41-43 is a local foothold for the LINK price growth continuation
As you can see in the chart, the LINKUSD price has tested the upper trend line of the growth channel, in which it started to move since March 2021. If you look closely at the chart, you will notice that the acceleration of the LINKUSD price growth took place immediately after the breakdown of the local range $41-43. In this range, the previous local high was set and a large number of investors fixed their long positions:
To understand if buyers’ intentions are serious, we want to see a retest of the LINK price in the range of $41-43. If buyers remain in control of this range, it will be a good buying range for Chainlink. Such a slight correction would give buyers a better chance of accelerating the growth wave and the test of $59.
The global picture on the LINK market speaks of correction
However, we are not yet ready to talk about a global growth wave. The fact is that the chart of the LINKBTC pair does not yet look so positive:
After a powerful fall wave, which lasted from 16 August, 2020 to January 2021, buyers managed to organize a counterattack. Though, this pullback, which is moving in the black channel, still resembles a correction. It is quite possible that after the test of 0.001, a new fall wave will begin in the LINKBTC market. The indicator for such a scenario would be the range of 0.00069-0.00074. If buyers fail to keep this mark, the LINKBTC price will quickly enough test the mark of 0.00041. If this scenario is realized, the LINKUSDT pair price may fall to $24. An important condition for such a scenario will be the beginning of a fall in the BTC market from an approximate range of $60,000-61,000.
The current phase of the market does not allow uncontrolled buying of crypto anywhere on the chart and waiting. You should be careful, as you can stay in a serious drawdown for a long time.
