• Chainlink price has taken its wave-like motion the next step, having established another range higher.
• LINK could drop 10% before another leg up, providing entry for traders looking to buy the dip.
• A break and close below $18.86 would produce a lower low, initiating a possible trend change.

With higher highs and higher lows, since the cryptocurrency markets turned bullish in October, the price of Chainlink (LINK) is currently trading with a bullish bias. The altcoin, which has a precise and dependable wave-like behavior inside a range, has made trading more accessible than it has been since November. If history repeats itself, traders of LINK may have another opportunity to purchase LINK at a reduced price.

Before the next leg up, Chainlink’s price is expected to drop by 10%

For the second time in February, resistance is being faced by the price of Chainlink (LINK), which is near $20.70. Before the next leg up, the altcoin may experience rejection and drop 10% to $18.12, providing another opportunity to buy.

The Relative Strength Index (RSI) is currently located near the area where it has previously pulled south several times. A bearish crossover in the Moving Average Convergence Divergence (MACD) indicator is also present in the line. This crossover is likely to cause a trend reversal to the south and is expected to be executed once the signal line’s orange band crosses below the MACD.

Around $18.12, the 50-day Simple Moving Average (SMA) at $17.49, or, for traders who are too optimistic, the $16.86 support level—a crucial region that represents the apex of the previous range-bound move—buy orders are probably gathered.

Conversely, if there is more purchasing pressure, the price of Chainlink may grow more. The pattern would be broken by a break and closing above the high of the $20.87 range. On the downside, a break and closure below the range bottom of $16.86 would result in a lower low and reverse the trend.

Conclusion

Making the right moves in cryptocurrency trading requires a blend of market vigilance, strategic planning, and respect for the unpredictable nature of this burgeoning financial realm. Should the forecast of a buying opportunity at $18.12 for Chainlink materialize, the steps outlined here will provide a solid framework for taking advantage of this potential leap. Ultimately, the wise investor understands that while predictions provide direction, success comes from adaptability and informed decision-making.