As a decentralized oracle critical to many DeFi projects, LINK has had a fantastic year in 2020, pushing up gains of 1,000% at its peak of $20. However, since Mid-August, the token has been caught in a descending channel. LINK recently broke this channel, and many people are now wondering whether this is the start of a new uptrend or a temporary move before continuing its downtrend. Read on to find out!
When Can we Confirm an Uptrend? After bouncing off the $7.3 support level, LINK broke the descending channel and attempted to break the resistance between $11.3 and $11.85. However, just because it broke the descending channel, that doesn’t necessarily mean that it will now start uptrending. The token may consolidate for a while before beginning an uptrend.
LINK made a new high following the bounce at $11.2, just before the resistance. Breaking this resistance is critical, as it will be seen as a higher high and a confirmation that we are in an uptrend and not in a consolidation phase.
Looking Ahead: If LINK starts an uptrend, the next major resistance levels on its way to the all-time high are 14$ and 17.5$. If the support breaks and LINK starts a downtrend, then the next support levels stand around $6.6 and $5.7.