ChainLink Daily Price Forecast (11/13/20) — Will Link Crash to 0.0005 LINK/BTC?
ChainLink pulled back again on Thursday, following through its rejection of the 50 Day EMA above and drifting down towards the 200 Day EMA around 0.000726. Link is in a defined downtrend and looks like it’s headed for more pain ahead.
(November 12, 2020 2:30 PM EST)
Outlook: ChainLink continues its slide on Thursday, getting rejected by the 50 Day EMA above yesterday and is now nearing the 200 Day EMA, indicating a short-term bearish bias. Looking at this chart, Link found a strong top in August of this year in what amounted to a mini altseason for many alts, which further highlighted ChainLink’s promising development during the long bear winter since 2018. However, since that time Bitcoin has gone on a tear, rallying over 50% and fortifying Bitcoin dominance, causing alts to bleed in satoshis. ChainLink is no exception, and based on its hyperbolic rally this summer, is now giving back most of its gains in relation to Bitcoin, as alts tend to do during early bull stages where Bitcoin rallies and alts diminish in value, and once Bitcoin starts to top, alts recover in furious fashion. I expect Link to do the same, but is currently being hammered and any purchase now, while probably a solid medium-long-term investment price, will probably be catching a falling knife now. I think it’s safer to wait for signs of a bottom or bouncing off support, whether that’s successfully testing and retesting of the 200 Day EMA, or breaking down and retracing nearly all of this year’s rally to the 0.0005 level, which would offer excellent value and a chance to ride this up again over the next couple years.
Support: Look for support around the 200 Day EMA at 0.000726, which is a historical point of support over the past 6 months and is probably the last support level before a breakdown to 0.0005, which is where Link spent considerable time consolidating earlier this year.
Resistance: Based on the price action above, it looks like the 50 Day EMA above will continue to serve as resistance and a selling level (if you dare to short cryptos), as well as the 0.001 Link/BTC level and possibly 0.00075 now, though that needs to be monitored over the next few days to see how Link reacts.
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