As a seasoned analyst with extensive experience in the cryptocurrency market, I believe that the recent sell-off has put pressure on Chainlink (LINK), resulting in a notable reversal from the $16 psychological level. The new lower high formation in the daily chart indicates that sellers are still dominating the price movement, pushing the asset down to $13.7, causing a weekly loss of 14.4%.
In the midst of the current market downturn, the Chainlink price experienced a significant turnaround from the $16 psychological mark. The formation of a new lower high on the daily chart suggests that sellers continue to have control over the price action, pushing it down to $13.7 and resulting in a weekly loss of 14.4%. Should selling pressure persist, the LINK price may revisit the multi-month support at $11.8, implying a potential bullish reversal.
Will the Falling Wedge Lead to a Bullish Reversal?
Over the last seven weeks, I’ve observed a consistent downtrend in Chainlink’s price, as indicated by a falling wedge pattern in its daily chart. This bearish setup has given the advantage to sellers, causing lower highs in price formations. Traders have been actively selling during bullish bounces, contributing to this correction trend.
The price of Chainlink (LINK) had reached a halt at the $13.82 mark, which represents a 50% Fibonacci retracement level. This pause led to an increase of 1.14% in the intraday trading. In a recent assessment by well-known trader @alicharts, there was an indication for buying LINK based on the TD Sequential technical indicator. This signifies a probable rise in LINK’s price if it manages to remain above the support level of $13.87.
The TD Sequential indicator is signaling a purchase opportunity on the 12-hour chart of Chainlink ($LINK). If the price holds above the support level at $13.87, expect a notable recovery reaching towards $15.50.
— Ali (@ali_charts) April 28, 2024
As a researcher studying cryptocurrency markets, I would interpret the trader’s indication as follows: If the cryptocurrency manages to hold its current crucial support level, there is a strong possibility for a rebound towards the target price of $15.50. This potential surge might overcome the resistance trendline of the wedge pattern and serve as a more definitive sign of a revived uptrend recovery.
After a price breakout, there is a strong possibility for a rally that could entice investors to pursue gains towards the targets of $18.6, then $20.7, and eventually reaching $22.86.
If the broader market correction continues, however, the price of LINK may dip back down towards $11.72 in order to find buyers and potentially initiate a bullish reversal. This level serves as significant support for the Chainlink coin. Until this support holds, there is a strong possibility that the market will see a bullish turnaround for LINK.
Technical Indicator:
- Experimental Moving Average: The LINK price trading below the 200-day EMA provides the sellers an upper hand over this asset.
Directional Movement Index: A negative crossover between the DI+(blue) and DI-(orange) slope indicates the correction trend is active.
Read More
- BCH PREDICTION. BCH cryptocurrency
- LUNC PREDICTION. LUNC cryptocurrency
- BTC PREDICTION. BTC cryptocurrency
- MNT PREDICTION. MNT cryptocurrency
- USD PHP PREDICTION
- SOL PREDICTION. SOL cryptocurrency
- ZKJ PREDICTION. ZKJ cryptocurrency
- METIS PREDICTION. METIS cryptocurrency
- USD MYR PREDICTION
- PSTAKE PREDICTION. PSTAKE cryptocurrency
2024-04-29 17:16