Price Analysis

Chainlink Price Analysis: Will LINK Recovery Surpass $16 By May End?

Chainlink Price Analysis: The LINK price, currently consolidating within a symmetrical triangle pattern, may soon unleash the accumulated momentum into a significant directional rally.

Published by

Sahil Mahadik

Published 13 May, 2024 | 08:23:55 PM UTC

Chainlink Price Analysis: Will LINK Recovery Surpass $16 By May End?

Highlights

The consolidation trend in LINK price hints at the formation of a symmetrical triangle pattern.
A bearish crossover between the 20-and-200-day EMA accelerates the supply pressure in LINK price
The intraday trading volume in the LINK coin is $272.2 Million, indicating an 82.8% gain.

Chainlink Price Analysis: For the past month, Chainlink (LINK) has been trading within a range defined by two converging trendlines, showing no clear dominance from either buyers or sellers despite significant price fluctuations on the daily chart. As Bitcoin continues to hover around the $60,000 support level, the broader altcoin market appears poised to maintain a sideways trend. Given this context, it is likely that LINK’s price will remain constrained by sluggish movement throughout the week.

Also Read: DBOE Officially Launches Next-Gen Spot DEX and Joins Chainlink BUILD Program

Early Signs of Reversal Amidst Continuing Bearish Trends

Chainlink Price Analysis| Tradingview

The near-term outlook for Chainlink (LINK) remains bearish, as it continues to face resistance from a declining trendline. Over the past two months, the asset has suffered a significant drop, falling from a high of $22.8 down to a low of $11.78—a 48.5% decrease in value.

Despite this, the market has started to show signs of stabilization, with the selling momentum waning and giving way to a slight relief rally. Additionally, the formation of a new trendline that supports higher lows suggests the early stages of a potential market reversal.

In a recent analysis shared on Twitter, renowned trader @alicharts highlighted a promising buy signal on the Chainlink (LINK) weekly chart, courtesy of the TD Sequential indicator. This tool, often used in technical analysis, has pointed towards a potential upward trend for LINK, suggesting that the cryptocurrency could see significant gains over the next one to four weeks.

For buyers to reassert dominance over the LINK market, it’s crucial for the price to breach the overhead resistance trendline. Successfully breaking this barrier could open the path toward pursuing a potential price target of $18.6, and subsequently, $20.7.

Technical Indicator:

BB Indicator: The squeezed range of Bollinger Band Indicator highlights highlighted volatility in Chainlink price.
Relative Strength Index: A notable recovery in the RSI slope from the oversold region indicates the increasing accumulation from buyers at discounted prices.

Sahil Mahadik

Sahil is a dedicated full-time trader with over three years of experience in the financial markets. Armed with a strong grasp of technical analysis, he keeps a vigilant eye on the daily price movements of top assets and indices. Drawn by his fascination with financial instruments, Sahil enthusiastically embraced the emerging realm of cryptocurrency, where he continues to explore opportunities driven by his passion for trading

Published by

Sahil Mahadik

Published 13 May, 2024 | 08:23:55 PM

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