Chainlink Price Eyes $20 Rally As Major Reversal Pattern Emerges

Highlights
- The falling wedge pattern governs the current correction trend in the LINK price.
- The confluence of 100-and-200-day EMAa at $14.7 creates a supply zone for traders.
- The intraday trading volume in the LINK coin is $328 Million, indicating a 43% gain.
The crypto market showcased low volatility on the weekend following the neutral candle formation in Bitcoin. Most of the major altcoins including Chainlink (LINK) showed intraday sideways action in an attempt to stabilize after a weekday rally. While the consolidation has stalled the Chainlink price rally at $14.7 resistance the formation of a bullish reversal pattern hints at the potential for an impending breakout.
Chainlink Price: Falling Wedge Pattern Indicates Trend Reversal
Amid the July market recovery, the Chainlink coin managed to bottom out its prevailing correction trend at $12.2. This multi-month support intact since January 2024 has prevented the LINK holds from major correction.
Intersently, the horizontal level aligns closely with the 38.2% Fibonacci retracement level and 200W EMA, creating a high accumulation zone. A bullish turnaround from $12.2 has boasted the asset 18.45 to trade at $14.4, while the market cap jumped to $8.75 Billion.
Moreover, the Chainlink price analysis in the 4-hour chart revealed the reversal as an inverted head and shoulder formation. This chart pattern is in sign-on bottom formation with a fresh breakout opportunity once obtained after the neckline breakout.
A potential breakout from the neckline at $14.7 will accelerate the bullish momentum and may push the LINK price 12% before it faces the next major resistance.
An analysis of the daily chart shows the development of a falling wedge pattern. In theory, the wedge pattern signals the maturity of a downtrend and the opportunity to launch a counterattack. The two converging trendlines dynamic support and resistance have carried a correction trend for the past 5 months.
Thus, the potential retest to the pattern’s boundary will act as pivotal momentum for the LINK price prediction. A bullish breakout signals an initial sign of trend reversal. The post-breakout rally could drive the Chainlink price.
However, if the overhead supply pressure persists, the LINK coin price may enter another correction and tend to retest $12.2 support.
Technical Indicator:
- Exponential Moving Average: The LINK price jump above daily EMAs 20D and 50D EMA indicates the near-term trend is shifting bullish.
- Average Directional Index: The falling ADX slope at 27% indicates the prevailing bearish trend is losing its momentum.
Frequently Asked Questions (FAQs)
1. What does the ADX indicate
2. Why is the 200-Week Exponential Moving Average (EMA) significant in technical analysis?
3. What is a Fibonacci retracement?
- Can Cardano Save Kadena? Hoskinson Reaches Out After KDA Token Plunges 60% Amid Shutdown
- Analyst Turn Bullish with $400 SOL Target as Hong Kong Approves First-Ever Solana ETF in Asia
- Veteran Trader Peter Brandt Says “MSTR Could Go Underwater” If Bitcoin Repeats 1977 Soybean Crash
- BSC Meme Season Ends as PumpFun Surpasses Four Meme Amid $8M Inflows
- ProShares Files for Index Crypto ETF Tracking Bitcoin, Ethereum, XRP, and Solana
- Chainlink Price Eyes $27 Rebound as Whales Accumulate 54M LINK
- Pi Network Price Wedge Signals a Rebound as Key Upgrades Raise Utility Hopes
- Solana Price Eyes $240 Recovery as Gemini Launches SOL-Reward Credit Card
- XRP Price Prediction Amid Evernorth’s $1B XRP Treasury Plan – Can XRP Hit $5?
- Ethereum Price Targets $8K Amid John Bollinger’s ‘W’ Bottom Signal and VanEck Staked ETF Filing
- Pi Coin Price Eyes 50% Upswing As AI-Powered App Studio Update Ignites Optimism