Hello, Traders!
Today, I'm going to show you the trend I followed with the CHAIN LINK.
LINK has been one of the fastest-growing cryptocurrencies of 2020, but will this growth continue? Various indicators are stating that the growth will continue and that this move down is simply a retracement.
Continued buying suggests continued bullish movement is ahead with the RSI (Relative Strength Index), showing that the trend is still very much bullish. LINK’s trend magnitude is significant, with the RSI over 60 for the whole of July.
On the contrary, the Heikin Ashi is pointing towards a period of downwards movement. This is seen with the most recent Heikin Ashi candle being red, suggesting that a retracement may be in place.
If this downwards movement continues it would see the SAR (Stop And Reverse), a momentum indicator, flip. This would suggest that the momentum has switched from bullish to bearish. The gap between the SAR line and the candles is very small, the wick of the recent downwards candle is almost touching the SAR line. It is important to note that with strong trends, the SAR is a very effective indicator. If the SAR did flip then a retracement would be highly likely, although to what extent could be indicated with the BBs (Bollinger Bands).
A retracement would likely see LINK test the median line (red line) of the BBs. If this occurred LINK would fall to around $6.5 USD, a 17% loss from LINKs current position.
Overall the indication is that the bullish movement will continue. Some indicators are suggesting that a reversal will occur, opening up a potential dip buy opportunity, before the further price increase. The overall trend remains bullish.
Will the market dip this week?
Good luck and keep up with the market!
Today, I'm going to show you the trend I followed with the CHAIN LINK.
LINK has been one of the fastest-growing cryptocurrencies of 2020, but will this growth continue? Various indicators are stating that the growth will continue and that this move down is simply a retracement.
Continued buying suggests continued bullish movement is ahead with the RSI (Relative Strength Index), showing that the trend is still very much bullish. LINK’s trend magnitude is significant, with the RSI over 60 for the whole of July.
On the contrary, the Heikin Ashi is pointing towards a period of downwards movement. This is seen with the most recent Heikin Ashi candle being red, suggesting that a retracement may be in place.
If this downwards movement continues it would see the SAR (Stop And Reverse), a momentum indicator, flip. This would suggest that the momentum has switched from bullish to bearish. The gap between the SAR line and the candles is very small, the wick of the recent downwards candle is almost touching the SAR line. It is important to note that with strong trends, the SAR is a very effective indicator. If the SAR did flip then a retracement would be highly likely, although to what extent could be indicated with the BBs (Bollinger Bands).
A retracement would likely see LINK test the median line (red line) of the BBs. If this occurred LINK would fall to around $6.5 USD, a 17% loss from LINKs current position.
Overall the indication is that the bullish movement will continue. Some indicators are suggesting that a reversal will occur, opening up a potential dip buy opportunity, before the further price increase. The overall trend remains bullish.
Will the market dip this week?
Good luck and keep up with the market!