Amid the ongoing recovery phase in the crypto market, the LINK price has been steadily rising for the past three weeks. If the buying pressure persists, the coin price may rise to $9.15 resistance which is the key barrier of a ten-month-long consolidation phase. Here’s how this sideways trend may influence the LINK’s future price and how you can trade it.
1)$5.5 level Stands As a Strong Accumulation Zone
Despite multiple events in the crypto market in the last ten months, the $5.5 level has managed to prevent excess loss for Chainlink holders. The coin price rebounded several times from this support indicating the traders are actively accumulating at this support.
Thus, a $5.5 level can act as a market bottom and restore the bullish momentum if prices make a revisit to this support.
2)Daily Chart Project Trading Setup of Price Consolidation
Over the last ten months, the Chainlink coin price has strictly resonated between the selling climax of $5.5 support and buying climax of $9.15 resistance indicating an evident sideways trend.
This consolidation came after the downtrend initiated in May 2021 indicating the selling momentum has exhausted. Thus, the market participants can use this range-bound movement to recuperate the bullish trend.
A bullish breakout from the $9.15 resistance will signal an early sign for trend reversal and offer a long-entry opportunity to traders.
On a contrary note, until the consolidation phase is intact, a breakdown below $5.5 is also possible and can invalidate the bullish thesis.
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3)Bullish Signal From Technical Indicator
Despite the sideways trend in the LINK price, a closer look at the weekly RSI indicator reveals a noticeable upward trend. The Relative Strength Index (RSI) is a widely used tool in technical analysis that helps gauge the strength of an asset’s price movement by comparing its recent gains to its recent losses.
In this case, the bullish divergence in the RSI slope suggests that there is a growing buying pressure around the $5.5 support zone . This indicates a greater likelihood that traders may eventually surpass the $9.15 barrier which could potentially lead to a further increase in Chainlink’s market value.
Chainlink Coin Intraday Price Levels.
- Spot price: $7.195
- Trend- Bullish
- Volatility- Medium
- Resistance Levels: $7.68 and $8.12
- Support Levels: $6.6 and $6.2
The post 3 Reasons Why Chainlink Coin May Offer Massive Returns In 2023 Bull Rally appeared first on CoinGape.
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