LINK Looks To Breakout Consolidation Pattern With A $5 Price Move

The price of LINK is currently printing chart patterns which interpret that the top cryptocurrency may be on the move to testing the $5 resistance level again. Having initially tested the area on June 24, 01:30 hours UTC, LINK saw a price rejection which caused a dip towards the $4.5 area within the next few days.

chainlink chart

Currently, prices have swung into a consolidation phase with alternate buying and selling taking turns at the overall market sentiments. However, there appears to be a triangle pattern formation which may determine how far (in any direction) LINK may go in the next few days.

Approaching the nip of a triangle formation, the general market condition is a healthy bullish momentum and this may likely continue in the longer term. LINK is currently changing hands at $4.59 and the market capitalization is tethering at $1.61 billion. Also, exchange volume remains on the high side, showing increasing demands at $313.45 million.

chainlink trading view

LINK/USD approaches the falling resistance at $4.6 where prices may eventually leave the triangle perimeter. The price will move straight ahead to the next major resistance at $5.0 in case of a breakout. Further momentum may encourage buyers to push the price beyond, leading to a test at $5.35 area. 

An inbound bull run seems to have more grip on the market currently. Buyers are bent on testing the $5.0 area again and perhaps may succeed even further. In the event that this materializes, strong support may be left at the next area of major resistance as a new milestone is touched. 

On the (unlikely) other hand, the bears may test the $4.2 price level within the triangle and try to build up resistance there. In the event of success here, a breakout of the rising support may occur and push the price further downwards to the next area of major support at the $3.8 level.