Popular crypto analyst Benjamin Cowen has described the best-case scenario for the decentralized oracle network Chainlink (LINK).
The trader told 710,000 YouTube subscribers that LINK remains below the bull market support band, a technical indicator combining the 20-week simple moving average (SMA) and the 21-week exponential moving average (EMA).
Cowen also notes that LINK has been building lower highs since May 2021. We can define this as small and short improvements in the price of a depreciating asset.
“We are approaching the end of December. We are trying to potentially break above the previous high since summer 2020… There is some work to be done for us. I’m not going to pretend we don’t exist.”
Chainlink is trading at $17.71 at the time of writing. The 22nd-ranked crypto asset by market cap is down 5.4% in the last 24 hours, but is up more than 9% from where it was priced a week ago.
The analyst says the “ideal scenario” for Chainlink is for Bitcoin (BTC) to trade above its own bull market support band, but also move sideways. Cowen notes that the previous LINK price spikes in July 2019, August 2020, and May 2021 all occurred while Bitcoin was moving sideways above the bull market support band.
Bitcoin, on the other hand, is trading at $ 42,318 at the time of writing. Cowen notes that BTC’s bull market support band is currently around $47,000 to $51,000.
Disclaimer: What is written here is not investment advice. Cryptocurrency investments are high-risk investments. Every investment decision is under the individual’s own responsibility. Finally, Koinfinans and the author of this content cannot be held responsible for personal investment decisions.