Chainlink (LINK) has been garnering attention in the world of crypto trading as its price hovers near the $16 mark, suggesting the possibility of a breakout towards $17 or even $20. Traders have been observing LINK’s consolidation between the $13.00 and $17.00 range since November, which presents lucrative opportunities for those who can navigate market cycles effectively.
According to the renowned Wyckoff method, analysts believe that LINK is currently in an “accumulation phase.” During this phase, sellers exit the market, prices stabilize, and indecision prevails. This sets the stage for a potential “markup phase,” characterized by surging buying pressure, rapid price increases, and heightened trading activity. The current price action of LINK seems to align with this theory, generating excitement among technical analysts.
Various technical indicators support the optimistic outlook for LINK. The Awesome Oscillator and MACD are both signaling bullish momentum, suggesting increased confidence among traders. Additionally, the Relative Strength Index (RSI) is leaning north and has the potential to cross its signal line, further fueling the bullish fire for LINK. The Simple Moving Averages (SMAs) also contribute to this positive sentiment, with both the 100- and 200-day SMAs pointing upward. The 200-day SMA is currently situated comfortably at $9.994, indicating the path of least resistance for LINK is in ascending territory.
If buying pressure continues to surge, analysts predict that LINK could surpass the 50-day SMA at $16.95 and ultimately reach the psychological price point of $17. In an exceptionally bullish scenario, LINK could even tap into its full potential of $20, representing a substantial 20% surge from its current position. The weekly timeframe shows LINK already up by nearly 17%, which further fuels speculation about the coin’s potential breakthrough.
Adding to the excitement is a recent surge of 17% that Chainlink experienced, propelling it closer to the long-awaited $17 barrier. While it is too early to confirm if this rally will be the catalyst for LINK to skyrocket beyond its immediate target, it certainly adds another layer of intrigue to the coin’s captivating price action. It is crucial to remain aware that external factors and market sentiment can shift rapidly, affecting the trajectory of LINK.
The next few days promise to be an exciting ride for LINK holders and a captivating case study for enthusiasts of technical analysis. Whether LINK coils upward for a glorious breakout or succumbs to profit-taking, it is clear that this coin’s price action is captivating traders across the crypto realm. However, it is important to note that this article is for educational purposes only and does not constitute financial advice. Traders should conduct their own research and make investment decisions at their own risk.
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Disclaimer: The article is provided for educational purposes only. It does not represent the opinions of NewsBTC on whether to buy, sell or hold any investments, and naturally, investing carries risks. You are advised to conduct your own research before making any investment decisions. Use the information provided on this website entirely at your own risk.
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