Quick take:
ChainLink’s correction from its August 16th peak above $20 seems to have slowed down thanks to the 50-day moving average. In the last two weeks, LINK has been in the process of finding an equilibrium after an impressive run that started on August 2nd and inspired by LINK marines wanting to liquidate Zeus Capital
.Revisiting the daily LINK/USDT, we find that there is still some selling pressure as seen through the trade volume being in the red. However, and as earlier mentioned, the 50-day MA (white) is providing much-needed support for LINK above the $12 price level.
Further dissecting the daily LINK/USDT chart, the following can be observed.
Also to note is that Crypto analyst Timothy Peterson of Cane Island Alternative Advisors, recently posted the following chart on Twitter indicating that LINK’s current price is still within an acceptable range of its Metcalfe Value.
Summing it up, LINK’s 50-day moving average has provided an area of strong support for ChainLink and stopped what looked like an accelerating freefall. Additionally, the weekend could provide the perfect environment for a significant bounce for LINK to the $13.90 resistance area or even $15. Furthermore, LINK’s current price is within an acceptable range of its Metcalfe value.
As with all analyses of ChainLink, traders and investors are advised to use adequate stop losses and low leverage when trading LINK on the various derivatives platforms.