The Chainlink consolidation is likely to extend before a majestic breakout to $20.
The hypotenuse of the ascending triangle must hold for the
bullish outlook to materialize.
Chainlink has recovered significantly from the support at
$7.5, which it established in September. The buyer congestion zone came in
handy following extended declines from the resistance from the yearly peak at
$20. A lower low pattern supported LINK/USD’s uptrend, however, the upside has
been limited under $14 for three months.
In the meantime, LINK/USD is doddering at $12.7 amid a sideways trading action. The Relative Strength Index adds weight to the motionless trading after hitting a wall at 64. A building bearish momentum is adding pressure to the short term support presented by the 100-day Simple Moving Average. On the other hand, low trading volume in the market suggests that price action will be limited in the near term.
LINK/USD Chart
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| LINK/USD Price Prediction |
LINK is also trading within the confines of an ascending triangle pattern. This pattern forms an integral part of technical analysis. Breakouts can take place above the x-axis or below the hypotenuse. If ADA builds upon the short term support at the 100 SMA, buying pressure could rise, which will increase the tailwind’s intensity.
A spike past the x-axis may culminate in massive price
action, targeting $20. For this narrative to hold, the hypotenuse support must
remain intact. Otherwise, losses might also come into the picture. Traders must
keep in mind other critical demand areas such as the 50-day SMA (likely to stop
losses beneath $10), and the 200-day SMA, in line to offer support above $8.
Chainlink intraday levels
Spot rate: $12.44
Percentage change: -3.2%
Trend: Short term sideways trading
Volatility: Low
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