Chainlink price dropped roughly 35% since September 16 but began consolidation after forming a swing low at $21. on September 22. This move was followed by congestion of LINK price action as swing points started converging. Chainlink/US Dollar reverted the losses which were made after it broke below 28.0 and 26.80 price action - by managing to take an exit from our upper trend line of the bearish channel and flirting with 38.20% fibo retracement level at 27.0 price action. Connecting trend lines joining these peaks and troughs reveals the formation of a symmetrical triangle. This technical formation has no directional bias and forecasts a 16% breakout, determined by measuring the distance between the highest peak and the trough. Adding this measure to the breakout point reveals a target of $28.40 or 18.26.

BULLISH AND BEARISH CONDITIONS/ POSSIBILITIES :

Since symmetrical triangles do not have a directional bias for breakouts, investors might expect LINK to break lower due to the bearish trend before the consolidation phase. However, the big crypto and altcoins are booming, suggesting that this symmetrical triangle is a bottom reversal pattern in disguise.

After Chainlink price produced a decisive closing above the trading range’s midpoint at 24.90, it is now targeting a move to 28.40. In some cases, LINK might also tag the subsequent barrier at $30.85, constituting a 30% ascent. Regardless of optimism in the cryptocurrency markets, if the Chainlink price produces a bearish breakout below 22.15, it will not necessarily invalidate the bullish thesis but only delay it. In some cases, the buyers might kick-start the uptrend inside the high probability reversal zone, ranging from $18.26 to 22.15.

Will the bulls be able to lift Chainlink above $29 benchmark?

Oct 04 2021