Published 7 hours ago
The prolonged retest phase of the falling wedge pattern indicates a lack of commitment from sellers to continue the prevailing downtrend. The buyers may take advantage of this consolidation to trigger a false pattern breakout. Thus, the expected breakout from the overhead trendline and $8 may open a recovery opportunity for Chainlink(LINK) price.
The RSI slope shows an evident bullish divergence in the daily time frame
The LINK price tease breakout from 20-day EMA
The intraday trading volume in the LINK token is $413 Million, indicating a 54% gain.
The year 2022 seems to be highly bearish for LINK/USDT pair as the market value fell drastically over the months. The downfall created a lower high formation learning to the resistance trendline of the bearish wedge pattern.
The increased selling experienced all over the crypto market led to a high-momentum bear cycle within the pattern resulting in the support trendline breakout. However, the breakout rally struggles a follow-through below $6.32, resulting in LINK price to follow a sideways shift that retests the broken trendline.
The lack of bearish follow-through and the extended consolidation teases a recovery rally ready to undermine the fallout. Hence, a relief rally drive the LINK price to the resistance trendline close to the $12 mark.
If the post-retest rally leads to the bearish breakout of the consolidation range, LINK traders can find the $6.32 breakout as an entry spot. And in such a case, the downslide can drive the market value to the psychological barrier of the $5 mark.
RSI indicator: The daily-RSI slope shows exceptional growth despite a lateral walk-in price action, encouraging the fakeout theory.
Vortex indicator: A bullish crossover among the VI+ and VI- slope offers additional confirmation for the $8 breakout. However, the expected spread between this line would accentuate the rise in bullish momentum.
Resistance levels- $8, $13.5
Support levels are $6.3, and $5
The presented content may include the personal opinion of the author and is subject to market condition. Do your market research before investing in cryptocurrencies. The author or the publication does not hold any responsibility for your personal financial loss.