The crypto market is up today as the star token, Bitcoin, underwent an iconic rally to mark new highs above $57,000. Besides, the Ethereum price is displaying more strength as it sustains above $3000, squeezing all the bearish pressures. In the meantime, the tokens Cardano & Chainlink, which were expected to erupt with the bulls capitulating the rally, continue to trade sideways.
What’s next for the ADA & LINK prices? Will the bull’s impact fade over the token or are the bulls planning for a strategic upswing?
The Cardano price underwent a phenomenal recovery and reached the neckline of the parabolic curve. The resistance zone is between $0.59 and $0.619 and appears to be largely controlled by the bears; for this reason, the price is unable to surpass them despite multiple attempts. Now that the bulls appear to have become more vigilant, a small bullish push could propel the price beyond $0.7.
It is worth noting that the Gaussian channel, which points out the prevailing trend, turned bullish a couple of weeks ago. Regardless of this, the DMI is about to go bearish, which suggests the channel may not expand. With less volume and volatility, it could be extremely difficult for the price to achieve the required highs. However, until the ADA price sustains within the resistance zone, the possibility of rejection remains distinct. Therefore, the token may consolidate for a while and with the next BTC bullish push, Cardano may also clear the upper resistance.
On the other hand, Chainlink’s (LINK) price is feared to lose the resistance zone that it had held tightly after marking yearly highs above $20.
In the daily time frame, the price is under intense pressure from both ends in an attempt to break through the key resistance zone. The volume is also in favour of the bulls but has been restricted below the average, due to which, the LINK price may continue to consolidate within the zone for a while. However, the RSI, which is hovering within the neutral zone, is displaying some possibility of triggering a decent upswing.
This may possibly lift the price back to the yearly highs, which may again exhaust the bulls, causing yet another rejection. Therefore, until the Chainlink (LINK) price sticks within the range, fewer chances of a bearish pullback can be expected. Otherwise, with the broader markets following the BTC price rally, the LINK price may also follow and achieve new highs.
Source: https://coinpedia.org/price-analysis/bitcoin-ethereum-are-rallying-some-large-caps-are-picking-up-why-ada-link-price-is-consolidating/