LINK Price Analysis: Bull Move Expected After Double Bottom?

The link token is currently moving in a sideways trend.
RSI indicator generates a buy signal for token.
A double bottom formation may be considered as a base for a bull rally ahead.

On a daily chart, Technical analysts might have noticed a formation of a double bottom pattern. After a double bottom pattern’s breakout, a bull move is anticipated. Moreover, it is also clearly visible that token has been moving sideways for a considerable amount of time.

What’s Next after a Consolidation Zone on a daily chart?

Investors may have observed on a daily chart that price of a token is presently consolidating in a zone before a double bottom pattern breakout. This consolidation may be considered as a positive signal because after this consolidation zone, a move that may occur on upside might be a strong bull move. Moreover, a Golden Crossover may also be seen on a chart as price of token rises.

Apart from this, it is also clearly visible that token gave a double bottom pattern breakout earlier as well.

The MACD indicator earlier showed a bearish crossover which indicated that bears took control over bulls but now, at a present time, MACD indicator is on a verge of giving a bullish crossover. An increase in prices may be seen after this bullish crossover.The RSI curve, on other hand, is trading over its 50-point threshold at 54.56. Once price of a token increases, RSI curve’s value may be observed increasing.

Overall, MACD is currently neutral whereas RSI indicator is delivering a buy signal.

Is token on a verge of showing a bull move?

On a short-term chart, it is visible that token is moving sideways and is currently facing resistance around $7.484. The Link token has tried to break this resistance multiple times but has not gained success. Therefore, an increase in prices of a token this time above a resistance, may lead to a bull rally. Apart from this, a Golden Crossover previously occurred on a short-term chart which led to increase in prices from support levels to current levels.

Conclusion

Investors may have come to a conclusion after examining both on a short-term and daily charts that token may continue to consolidate for a little time at current price levels, but after crossing a resistance and delivering a double bottom pattern breakout, a sharp bull move may occur.

Technical Levels

Resistance levels – $7.484 and $9.476

Support levels – $6.543 and $5.743

Disclaimer: The views and opinions stated by an author, or any people named in this article, are for informational purposes only, and may not establish financial, investment, or any other financial advice. Investing in or trading crypto assets comes with a risk of financial loss.

Andrew is a blockchain developer who developed his interest in cryptocurrencies while his post-graduation. He is a keen observer of details and shares his passion for writing along with being a developer. His backend knowledge about blockchain helps him give a unique perspective to his writing