The Bitcoin market is roaring with an all-time high at over $34k and the remaining altcoin market has been following its lead. Interestingly, Chainlink has not been witnessing the same momentum in its market. Despite the grand rally in the BTC market, the price of LINK has been moving with a reduced momentum.
At the time of writing, it was being traded at $12.06 while its market cap was noted to be $4.81 billion.
Chainlink one-hour chart
Source: LINKUSD on TradingView
The above chart of LINK indicated the wave-like movement of the digital asset. It has been testing the resistance at $12.44 and has been noting a pullback from this point and the price has been consolidating between $12.44 and $11.78.
The current market movement suggested LINK may once again test the upper limit, providing an opportunity to make a short-term profit with a long position.
Reasoning
The 50 moving average has been supporting the upwards movement of LINK. The coin has been noting an upward acceleration in price and this was even reflected in the Relative Strength Index. The RSI after reaching equilibrium has once again been noting an upwards spike indicating an increase in the purchase of the digital asset.
Whereas, the Awesome Oscillator reflected reduced momentum in the market. Even though the value of the indicator was positive, the momentum was not enough to continue the trend in the short-term.
Position
Entry: $12.13
Stop-Loss: $11.95
Take-Profit: $12.45
Risk-to-Reward: 1.87
Conclusion
The current momentum in the Bitcoin market may help the price of LINK once again test the resistance at $12.44. In the absence of which the LINK market may also see a trend reversal for the coin.
