- Market structure: Chainlink throttled its pace after bottoming out at 13.50. Since that price, it has started to move up forming HH and HL’s, which interprets, a bullish structure. Market is now in a range between support at 21.90 and resistance at 25.80. The resistance of 25.80 broke and market retested the resistance turn support reaching, continuing to head up.

- Trendline: There is an ascending trendline in the formation. This trendline was tapped by a pinbar and continued up. It tapped the market at the resistanace turn support area. 

- Retracement: The price at 23.00, we have a golden zone aligned with the support level. This level may act as a strong support, disabling the market the further break down.

- EMA's: EMA 50 and EMA 200 had a death cross for the bullish trend. After the death cross, the market tends to trend in that specific direction of the death cross, which in this case, is the bullish direction. We may see an EMA 50 retest at the support level, which will give us 4 confluence points to go long. Chainlink might get a retest on the EMA 200 at the support level at 23. 

- RSI/CCI: Both the oscillators are in a bullish region. Until they are above the 50 and 0 levels respectively, it is safe to apprehend the fact of Chainlink heading up after tapping the support.

With Chainlink, we have 4 confirmations at the 23.00 level of support to go long. Although the cryptocurrency market is starting to rally again, we will still wait for Chainlink to test the support to continue up. As there is a range right now, the pressure being built up may take the Chainlink to a higher high. This setup is a high probability setup and we may see a surge of 30-50% within few days or weeks. Stop loss should be below the 2nd support area. If market triggers our stops, we will wait for the bottom support to take another long position.

Reminder on Chainlink Long position

Aug 13 2021

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