- Chainlink price closed Wednesday’s session with an impressive gain of 7%.
- The bulls attempted to extend Wednesday’s rally but were easily dismissed by sellers.
- Upside potential remains substantial, while downside risks are more limited.
Chainlink’s price has seen significant fluctuations over the past two trading days. The bulls were unable to repeat Wednesday’s performance but, at the same time, minimized LINK’s Thursday losses. More importantly, from an Ichimoku perspective, the bulls were able to hold the daily close above the Tenkan-Sen and Kijun-Sen, creating a fantastic base for higher moves.
Chainlink price is developing a bullish support structure, but follow-through is needed to prevent a continued downtrend
Chainlink price made several major bullish events on Wednesday’s close. Wednesday’s close confirmed a break above the falling wedge as well as the Tenkan-Sen and Kijun-Sen. But the price action and resistance areas ahead could be choppy, despite the bullish close.
LINK/USDT Daily Chart Ichimoku Kinko Hyo
As a result, the Point and Figure 1/3-box chart sheds some more light and clarity on what the candlestick chart cannot – a potential buying opportunity is now present for Chainlink price.
The hypothetical long opportunity for Chainlink price is a buy stop at $16, a stop loss at $12, and a profit target at $32. However, while the profit target at $32 is derived from Point and Figure analysis, LINK is more likely to stop at the $25 value zone. $25 is a naturally powerful psychological number, but it also contains the 50% Fibonacci retracement and the Kijun-Sen.
LINK/USDT $1.00/3-box Reversal Point and Figure Chart
The long idea represents a 4:1 reward for risk setup. A trailing stop of two to three boxes would help protect any implied profit made after entry. The setup is invalidated if the Chainlink price falls to $11. Also, Point and Figure does not use volume or time – just price – so a time limit or expectation of “when” is moot.