- Chainlink edges above 20-day EMA for the first time in more than a week
- Price increased a single percent up to $31 but trading volume dips
- Breakdown from a consolidation rectangle pattern observed on the 4-hour chart
Chainlink price analysis shows that the token has moved past the 20-day exponential moving average (EMA) to consolidate above $30, presenting a bullish return. It could be seen over the past couple of days that LINK was trading above the 0.5 FIB mark, raising questions if there was momentum within the current trend.
Today, after an increase of almost 1 percent, the $30 resistance has been broken, indicating the bullish sentiment is intact. Moreover, price is also trading above the 20, 50, 100 and 200-day EMAs, in comparison to a dip in trading volume of over 24 percent.
The larger cryptocurrency market showed reds on the intra-day market, apart from Ethereum’s ascend of over 3 percent to above $3,500. Bitcoin fell slightly, trading just under $47,500, whereas Altcoins showed worrying signs.
LINK/USD 24-hour chart: Ascending triangle pattern forms as price oscillates near resistance
The 24-hour char for LINK/USD pair exhibits formation of an ascending triangular pattern, where each red candlestick from over the past week is higher than the previous one, providing encouraging signs for bulls. The relative strength index (RSI) is at a healthy value of 55, suggesting there is enough buyer power in the market to drive price further.
The moving average convergence divergence (MACD) line is plotted very close to the neutral zone and is expected to cross it, confirming an expected breakout for the token past the $30 resistance. The 9 EMA also lies below the MACD signal, confirming there is further upward potential in the current trend.
LINK/USD 4-hour chart: Consolidation rectangle pattern observed over previous trading sessions
The 4-hour chart in Chainlink price analysis suggests that a rectangular pattern has formed over the past few trading sessions, indicating consolidation in price near the $30 resistance over the short term. The 4-hour RSI is also at a good enough value of 56, justifying forward momentum in the current trend.
Price oscillates between the upper and middle Bollinger bands’ curves, confirming potential to move up. Over the next few trading sessions, further consolidation may be observed near or above $30, before a breakout is expected that may face resistance at $34. Any return between the current and resistance range will come off as a huge boost for LINK bulls.
Technical analysis for Chainlink price confirms that the cryptocurrency is set for a bullish run to take it above $30. Price bounced off the 0.5 FIB level to consolidate near current resistance, and trades above all EMAs.
In current trend, there may be potential to hit the next resistance at $34, with the RSI suggesting adequate room for upward movement.
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