In the past 12 months, Chainlink has remained one of the top performing cryptocurrencies. LINK is now greater than Litecoin as of January 23 and is now number seven with a market capitalization of $9.2 billion, despite surpassing Bitcoin Cash earlier this week.
This week, the LINK price surge also coincided with reports that Grayscale is planning to introduce a Chainlink Trust product. This news event undoubtedly played a role in Chainlink’s price rallying into new all-time highs, making LINK one of the top performing cryptocurrencies.
According to cointelegraph.com, when the price is soaring, most people have the impulse to enter a position. But the best entries do really come from such support/resistance flips. Specifically, at the $10 level, the first support/resistance flip took place, after which the same happened with the $13 and $17.30 areas.
The $17.30 area, as well as the $19.50 zone, is therefore the critical level to watch for probably further downside. This latter region is the previous all-time high in 2020 and maybe the point of the next flip in support/resistance, which for further upside would be bullish.
When Chainlink is in price discovery, it becomes difficult to identify the next points of interest of the prospective top structures. However, for traders to define these areas, the Fibonacci extension method is very useful.
The first zone is between $29-31 using this indicator, which aligns with each of the Fibonacci extensions. The second zone is $39 for the 2.618 Fibonacci extension, and the last zone is $42 for the area.