As a seasoned cryptocurrency market analyst with over five years of experience in technical analysis, I have seen my fair share of price movements and chart patterns in various digital assets. Based on my extensive research and analysis of Chainlink (LINK), I believe that the recent consolidation following a neutral candle formation in Bitcoin and the low volatility in the crypto market is a sign of a potential trend reversal for LINK.
Over the weekend, the cryptocurrency market exhibited minimal price fluctuations, reflecting the calm candle formation in Bitcoin. Notable altcoins like Chainlink (LINK) displayed modest intraday swings as they sought equilibrium following a weekday surge. The consolidation around $14.7 resistance has momentarily halted Chainlink’s upward trend, but the appearance of a bullish reversal pattern suggests that a powerful price increase could be imminent.
Chainlink Price: Falling Wedge Pattern Indicates Trend Reversal
During the market upturn in July, the Chainlink coin found a bottom at $12.2, which had been a significant source of support since January 2024. This long-standing support level helped shield LINK investors from extensive price drops.
The horizontal level aligns closely with the 38.2% Fibonacci retracement and the 200-week Exponential Moving Average (EMA), forming a significant area of accumulation. Following a bullish reversal from $12.2, the asset has surged to trade at $14.4. Consequently, the market capitalization has risen to reach $8.75 billion.
Additionally, theChainlink price examination in the 4-hour graph indicated a reversal through an inverted head and shoulders configuration. This chart design signifies a bottom reversal pattern that emerges following the neckline breach, presenting a fresh chance for a breakout.
If the price of LINK breaks out above its neckline at $14.7, this could significantly boost the current uptrend. The subsequent rise in price might reach up to a 12% increase before encountering the next significant barrier.
A close examination of the daily price chart reveals the emergence of a falling wedge formation. This technical pattern hints at the conclusion of a prolonged downtrend, potentially signaling an imminent reversal. The trendlines forming the wedge have served as both support and resistance during the previous 5-month correction phase.
Based on my extensive experience in cryptocurrency market analysis, I strongly believe that a potential retest to the pattern’s boundary could act as a pivotal momentum point for LINK price prediction. When we observe a bullish breakout, it often signifies an initial indication of trend reversal. The post-breakout rally can significantly drive up the Chainlink price, offering exciting opportunities for investors and traders alike. Having closely monitored market trends and patterns throughout my career, I have found that these situations hold significant potential for substantial gains.
If the pressure on the overhead supply continues, there’s a possibility that the LINK coin price could correct again and potentially touch the $12.2 support level.
Technical Indicator:
- Exponential Moving Average: The LINK price jump above daily EMAs 20D and 50D EMA indicates the near-term trend is shifting bullish.
Average Directional Index: The falling ADX slope at 27% indicates the prevailing bearish trend is losing its momentum.
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2024-07-21 23:46