The euphoria in the DeFi market continues and it seems that uncorrected growth will last forever. In 2 weeks, LINK buyers managed to raise the price by 40%.
The ETH market is exhausted, but is moving towards our final target of $40, which we wrote about in the previous article:
Is Chainlink (LINK) Market Weak?
Starting from 4 February, the LINK price increasingly touches the main trend line of buyers, which steadily reflects all the attacks of sellers from 23 December 2020.
Given the fact that new local highs continue to be given to buyers harder and harder – the LINK market is preparing for a correction.
If we analyze the trading volumes in the LINK market, we see a systematic decrease. According to Coinmarketcap LINK ranks 2nd place among the DeFi tokens in daily trading with a result of $2,843,285,762.
The fact of continued sluggish growth at decreased volumes leads to thoughts of inertia and the price search for the final point for reversal. Looking at the wedge formation on 18 January, everything indicates that this final point may be the mark of $40.
At the moment, the LINK price trading range has narrowed to 15% due to the wedge trend lines. A good signal of the purchases culmination will be the high volumes on the daily candle, which should be closed with a pin-up.
Link Buyers Control the Price
Though, at the moment, the above facts are more than signals for observation. Much stronger facts are the trend line keeping on yesterday’s local BTC fall and control over the range of $32-32.6.
This range is now a globally critical point that protects the trend of buyers from breaking. Having lost this range, sellers will be able to test $26-26.8 very quickly.
Given the new BTC all-time high update and the resistance in this mark, the scenario of the correction beginning in the LINK market is becoming more realistic.
LINKBTC Price Does Not Bring Positivity to the Situation
Analyzing the price LINKBTC chart, we can see that buyers have almost managed to test the global trend line, which they lost in December 2020.
Locally, in the daily timeframe, we see that another growth wave within the new fall channel is possible. Although, a second test of the green range, from which buyers began a rebound is highly likely.
If this fact coincides with the BTC correction, we will see a 15-20% fall in the LINK market. Therefore, you should be careful now in the cryptocurrency market.