Published 10 mins ago
The chainlink price chart shows the formation of an ascending triangle pattern. Under the influence of this pattern, the coin’s market value should increase significantly. Thus, the neckline resistance of $9.5 and rising support trendline are the important levels that may influence the coins’ future price.
- The ascending triangle pattern governs the chainlink price action
- The daily-RSI slope renters the bullish region
- The intraday trading volume in the LINK coin is $706.5 Billion, indicating a 22.6% gain.
Source- Tradingview
Amid the recent correction in the crypto market, the Chainlink price has struggled to surpass a local resistance of $8. As a result, the coin price witnessed an aggressive downfall last week and retested the ascending support trendline.
This coin price has rebounded from this support multiple times, indicating the buyers are actively buying at this support. On September 22nd, the Chainlink price rebounded from this support trendline with a morning star candle. Thus, the replenished bullish momentum rose for four consecutive days, registering a 21.3% gain.
The V-shaped recovery undermined the prior correction and hit the $8 resistance. However, this bullish rally backed by decreasing volume indicates weak bullish commitment. Thus, with this volume action, the altcoin price is likely to revert from this resistance.
Thus, a potential reversal could continue the ongoing consolidation and plunge the prices back to support the trendline this coming week. The coin holder can maintain a bullish outlook until this ascending trendline is intact.
Furthermore, in response to the bullish pattern, the Chainlink price should eventually breach the $8 resistance and rise 17.5% higher to the $9.5 neckline resistance.
Under a strong bullish scenario, a bullish breakout from the neckline resistance will trigger the triangle pattern to encourage further bull-run.
Technical Indicator
EMAs: the flattish EMAs(20, 50, and 100) accented a sideways rally in chainlink price. However, the 20-and-50-day EMA wavering at the $7.3 level forms strong confluence support.
MACD indicator: the fast and slow lines wavering around the midline indicate uncertainty among market participants.
- Resistance levels- $8 and $9.5
- Support levels- $7.38 and $6.65
The presented content may include the personal opinion of the author and is subject to market condition. Do your market research before investing in cryptocurrencies. The author or the publication does not hold any responsibility for your personal financial loss.
Source: https://coingape.com/markets/how-long-will-chainlink-price-consolidation-last/