Should LINK Holders Worry about $7.3 Barrier Stalling Rising Prices?

The Chainlink(LINK) price escapes a long-coming falling wedge pattern with a bullish breakout from the downsloping trendline. This breakout hints the market participant’s sentiment is flipped from selling on rallies to buying on dips. The resulting rally charges to the first barrier of the $7.3 mark to test the buyers’ commitment. Will it break?

Key points: 

• Wedge pattern breakout encourages trend reversal
• The LINK buyers currently struggle to surpass the $7.34 resistance
• The intraday trading volume in the LINK coin is $991.7 Billion, indicating a 27.8% gain.

Source- Tradingview

In response to the past eight months of downfall and uncertainty, the LINK/USDT pair shaped into a textbook example of a falling wedge pattern. This bullish pattern usually encourages a reversal of the prevailing trend once the coin price breaks its resistance trending.

Thus, on July 4th, the LINK price gave a bullish breakout from the descending trendline, signaling a recovery opportunity for coin holders. The post-retest rally surged the altcoin 23.47% higher to its current level of $7.32.

Furthermore, this run-up strikes the immediate resistance of $7.3, hoping to acquire a higher footing for buyers to carry forward this rally. Thus, if the buying pressure persists, the LINK price should reclaim the $7.3 mark, opening the door to the $8 psychological mark.

Anyhow, the technical set-up for a wedge pattern suggests the coin price should rise to the $36.3 mark, i.e., 369% higher than the current price.

Conversely, the long-wick rejection in today’s daily candle projects a minor retracement is plausible. If this happens, altcoin may retest the flipped support of the $6.62 mark before the LINK price breach the $7.3 resistance.

However, a breakdown from $5.83 support may invalidate the bullish thesis and could continue the prevailing downtrend.

Technical Indicator

ADX indicator: the ADX slope started to rise again, accentuating growth in bullish momentum. 

Vortex indicator: A constant spread between the VI+ and VI- slope in a bullish alignment reflects aggressive buying in the market. Moreover, the buyers would get an additional confirmation for their long trade as these slopes continue to walk apart.

• Resistance levels- $0.55, and $0.64
• Support levels- $0.5 and $0.41