Chainlink’s LINK token briefly pumped and dumped today on news that Robinhood had listed it. Regardless, the decentralized oracles token appears to have the strength to continue trading above support.
Robinhood Lists Chainlink’s LINK
Chainlink’s LINK token is broadening its horizons to a broader range of investors following its listing on the online brokerage platform Robinhood.
American retail trading company Robinhood officially confirmed that it added LINK to its cryptocurrency offerings. This is the first time the platform had listed new tokens since mid-April when it added support for Compound, Polygon, Solana, and Shiba Inu. The new listing may help provide more liquidity to the decentralized oracles token.
LINK jumped by nearly 9% following the announcement, going from a low of $6.70 to an intraday high of $7.20. Prices have retraced since then by nearly 10%, and the token hovers around $6.50 at the time of writing. From a technical perspective, it appears has yet to gain the strength for a significant movement.
Chainlink appears to be consolidating within a parallel channel on its hourly chart. Each time the token reaches the channel’s upper boundary, it retraces to the lower boundary. From this point, LINK tends to rebound again, which is consistent with the characteristics of a channel.
The recent rejection at $7.20 appears to have encouraged traders to exit some of their positions. Further selling pressure could push LINK to the channel’s lower trendline at $6.30 before a rebound to the channel’s upper trendline at $7.50 occurs. Still, it remains to be seen whether Chainlink can hold above support.
Failing to keep the $6.30 level as support could trigger a bearish breakout. The parallel channel’s width added to the breakout point suggests that a breach of support can result in a 15.7% correction toward $5.30.
Disclosure: At the time of writing, the author of this piece owned BTC and ETH.