- If the market supports Chainlink’s bullish structure formation, then LINK might rally to $50.
- Hpwever, a short-term pullback can be expected first.
As a seasoned crypto investor with a knack for spotting trends and patterns, I find myself intrigued by Chainlink’s [LINK] recent breakout and bullish symmetrical triangle formation. The token’s price action suggests a potential rally to $50 if the market continues to support its bullish structure. However, as we all know in this wild world of crypto, a short-term pullback is inevitable before the real fireworks begin.
For a week now, it appears that Chainlink’s price has been moving within a holding pattern or consolidation phase. However, surprisingly, the token successfully broke through an extended resistance pattern that had held for years.
Over the next several days, it’s expected to be relatively calm; however, if the broader market provides a strong impulse, Chainlink (LINK) could reach new record-breaking heights.
Chainlink’s next plan
According to AMBCrypto’s examination, an interesting trend appeared in LINK’s daily chart this year. This trend resembles a bullish symmetrical triangle formation.
After that point, the value of the token has been holding steady within its range, but recently managed to break free from it. Following this breakout, however, the upward trend for LINK has started to slow down.
It seems like we’re merely turning over a new page here. The breakout hints at potential formation of a bullish flag pattern for LINK.
Under favorable market circumstances, LINK could potentially challenge its All-Time High (ATH) and climb up to around $50 within the next few months.
A surge beyond the “bull flag” during a period when altcoins are on the rise could ignite a significant upward trend. Interestingly, recent data hints that the arrival of the altcoin surge may happen earlier than previously anticipated.
As a researcher, I recently noticed that according to AMBCrypto’s report, Bitcoin‘s (BTC) dominance dropped below a significant support level a few days ago. Simultaneously, the Altcoin Season Index has seen a sharp rise, suggesting that altcoins could potentially regain prominence starting from December itself.
What’s there in the short-term?
To gauge what might happen with Chainlink in the short term instead of waiting for $50, AMBCrypto examined relevant metrics.
Significantly, there was a significant rise in LINK’s trading balance, suggesting that demand for selling it was growing strongly – a sign that a drop in its price might occur.
The Non-Volatility to Price (NVT) ratio experienced a surge, usually signaling that the asset might be overpriced and could see a dip. But fear not, these temporary price adjustments are common preceding the formation of a ‘flag’ pattern in the market.
It’s intriguing to note that even though Chainlink’s indicators pointed towards a decrease in price, the actual losses experienced by holders decreased significantly instead. This could be explained by the fact that previous price surges encouraged more investors to realize their profits.
Afterward, we examined the day’s price chart for the token to identify potential short-term areas where it could find support or resistance. Our findings indicated that at the moment of writing, Chainlink was being tested by a possible support level at around $18.66.
A successful test could still allow LINK to move up in the coming days.
Despite a potential failure in the test, the price might revert to $14.9. Nevertheless, under all circumstances, there was a significant likelihood that the token would form a bull flag pattern.
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2024-12-02 02:15