Chainlink's (LINK) signal led to a surge of 14,000%.
Chainlink (LINK) recently experienced a lower low on daily timeframes, indicating a continued downtrend and weakness at support. However, on higher timeframes, technical analysis suggests a possible strength building scenario. In fact, a signal has appeared that prompted a 14,000% rally in LINKUSD in the past.
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Chainlink's (LINK) signal led to a surge of 14,000%. High Timeframe Bullish Confluence Hints At Surprise Chainlink Recovery
Chainlink (LINKUSD) is currently trading at more than 80% below its previous all-time high. Recently, the daily charts showed a temporary breakdown, forming a lower low. However, the monthly timeframe did not show a lower low on a closing basis, which is a positive sign.
The monthly candlestick formed a dragonfly doji, which is a potential bullish reversal pattern in Japanese candlestick analysis. Furthermore, on the weekly timeframe, Chainlink formed a morning star pattern, which is another bullish Japanese candlestick reversal pattern.
Overall, Chainlink is showing some positive signs in its technical analysis, which could indicate a possible bullish trend. Chainlink's (LINK) signal led to a surge of 14,000%.
A LINK To The Past: Oversold Stochastic No More
If bullish range reclaim on low timeframes, and a pair of higher timeframe Japanese candlestick reversal patterns aren’t enough confluence for you, there’s more.
The one-month Stochastic has left oversold territory for the first time since late 2021. The indicator spent all of 2022 oversold, and halfway through 2023.
Prior to that, the last time Chainlink left oversold conditions was back in early 2019, before going on an over 14,000% run. The signal is back and in alignment with the potential reversal patterns from above.
Meanwhile, Bitcoin and other cryptocurrencies have enjoyed much more of a recovery by comparison. The broader trend turning around more clearly could remove whatever doubt is remaining surrounding LINK, allowing the altcoin to return to its former glory days.
Disclaimer: This article is provided for informational purposes only. It is not offered or intended to be used as legal, tax, investment, financial, or other advice.