Can $7.5 Breakout End Ongoing Consolidation?

 The Chainlink(LINK) price signals the end of a seven consolidation phase with a bullish breakout from $7.5. This range breakout should trigger a directional rally that may surpass the $8 psychological level, but what’s the next target?

Key points: 

• The 20-and-50-day EMA is nearing a bullish crossover
• The LINK price faces selling pressure at $8 resistance
• The intraday trading volume in the LINK coin is $984.8 Billion, indicating a 63.5% gain.

Source- Tradingview

On June 10th, the LINK buyers’ failed attempt to surpass the $9.65 resistance resulted in a 37% drop. This downfall retested the May low support zone at $5.7 and started walking a lateral path.

The LINK price has resonated between the $5.7 and $7.5 barrier for nearly seven weeks. Furthermore, with improving market sentiment, the altcoin gave a decisive breakout from the aforementioned resistance.

Over the past three days, the LINK chart shows steady growth in volume activity, indicating market participants are looking for buying opportunities. Thus, a daily candlestick closing above the $7.5 mark should flip this breached resistance into a suitable footing to extend the ongoing rally.

If the coin price sustains the expected retest, the potential bull run should surpass the minor resistance of $8 and 24% higher to $9.65.

Though things are looking bullish for the Chainlink (LINK) coin, if buyers fail to sustain above the $7.5 resistance, the bullish thesis would invalidate, and prices may return to $5.7.

Technical Indicator

DMI indicator: The DI lines regain a bullish alignment with the recent crossover event reflecting an uptrend in motion. Furthermore, a positive turnaround in the ADX line suggests sustained buying from traders.

EMA: The bull run exceeds the 20-and-50-day EMA, increasing the bullish influence over the chart. Thus, the possibility of a bullish crossover between the said EMAs increases sharply.

• Resistance levels- $8 and $9.65
• Support levels- $7.5 and $5.7