Traders in the crypto world are watching Chainlink (LINK) with bated breath as the the price rises around $16indicating a possible breakout towards $17, or even $20, given the right conditions this week.
Since November, LINK has been consolidating between $13.00 and $17.00, exhibiting classic market cycle behavior that presents excellent opportunities for smart traders.
Technical analysts are abuzz with potential bullish scenarios, with many pointing to the current price action as the telltale sign of an ‘accumulation phase’. According to the famous Wyckoff method, this phase sees sellers retreat, prices stabilize and indecision reign over the market.
Will Chainlink reach the vaunted $20 mark?
After the accumulation comes the long-awaited ‘markup phase’, which is characterized by rising buying pressure, rapid price increases and increased activity.
And that’s exactly what the charts seem to predict for LINK. Indicators such as the Awesome Oscillator and MACD are flashing green and towards bullish territory, indicating growing confidence and impending upward momentum.
Chainlink currently trading at $15.57682 on the daily chart: TradingView.com
The Relative Strength Index (RSI) is also trending north, possibly poised to cross its signal line and add fuel to the bullish fire.
Further reinforcing the optimistic outlook are the Simple Moving Averages (SMAs). Both the 100- and 200-day SMAs are pointing north, with the latter currently sitting comfortably at $9,994. This upward trajectory indicates that the path of least resistance for LINK is in rising territory.
Source: TradingView
Should buying pressure rise above current levels, analysts predict a potential jump over the 50-day SMA at $16.95, paving the way for a psychological price of $17. In a very bullish scenario, LINK could even reach its full $20 potential an increase of 20% compared to the current position.
LINK price up nearly 17% in the weekly timeframe. Source: Coingecko
17% rally provides more optimism for LINK
But a new spark ignites the conversation – Chainlink is up just 17% today, bringing it closer to the long-held $17 mark. Could this recent rally be the catalyst that rockets LINK beyond its immediate goal and into uncharted territory?
It is still too early to say anything definitively about that. While technical indicators remain encouraging, external factors and market sentiment can change quickly. However, one thing is certain: Chainlink’s latest surge adds a new layer of intrigue to the already compelling price action.
Whether it rises for a glorious breakout or succumbs to profit-taking, the coming days promise to be a thrilling ride for LINK holders and a fascinating case study for technical analysis enthusiasts alike.
Featured image from iStock
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