Crypto traders are eagerly watching Chainlink (LINK) as its price hovers around $16, hinting at a possible breakout to $17 or even $20 this week under favorable conditions. Since November, LINK has been trading between $13.00 and $17.00, showing typical market cycle behavior that offers opportunities for smart traders.
Technical analysts are optimistic, seeing the current price action as a sign of an “accumulation phase” following the renowned Wyckoff method. During this phase, sellers leave, prices stabilize, and the market is marked by indecision, setting the stage for potential bullish scenarios.
LINK’s Potential Surge: Indicators Pointing Towards Bullish Momentum
After the accumulation phase, Chainlink (LINK) is poised for the much-anticipated “markup phase,” characterized by rising buying pressure, rapid price increases, and heightened activity. The charts are indicating positive signs for LINK, with indicators such as the Awesome Oscillator and MACD showing green signals and heading towards bullish territory, indicating growing confidence and imminent upward momentum.
Chainlink currently trading at $15.57682 on the daily chart: TradingView.com
The Relative Strength Index (RSI) is also pointing north, potentially gearing up to cross its signal line and further contribute to the bullish sentiment. Adding to the positive outlook are the Simple Moving Averages (SMAs). Both the 100- and 200-day SMAs are trending upwards, with the latter comfortably resting at $9.994. This upward trajectory suggests that the path of least resistance for LINK is in the ascending territory.
Source: TradingView
If buying pressure continues to strengthen above current levels, analysts anticipate a potential breakthrough over the 50-day SMA at $16.95, setting the stage for reaching the psychological $17 price point. In an exceptionally bullish scenario, LINK could even achieve its full $20 potential, representing a substantial 20% surge from its current position.
LINK’s 17% Surge: A Potential Breakout or Temporary Rally?
In a sudden turn of events, Chainlink (LINK) experienced a remarkable 17% surge today, bringing it closer to the enduring $17 barrier. This rapid rally raises questions: could it be the driving force propelling LINK beyond its immediate target into uncharted territory?
It’s too early to provide a definitive answer. While the technical indicators continue to be positive, external factors and market sentiment can swiftly change. One thing remains certain—the recent surge adds an extra layer of excitement to Chainlink’s already captivating price action.
The next few days hold the promise of a thrilling ride for LINK holders and an intriguing case study for enthusiasts of technical analysis. Whether LINK coils upward for a breakout or experiences profit-taking, the unfolding events are sure to keep the crypto community on the edge of their seats.
Important: Please note that this article is only meant to provide information and should not be taken as legal, tax, investment, financial, or any other type of advice.
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