- If Chainlink is supported by the bullish market structure, LINK could rally up to $50.
- Hpwever a temporary pullback is to be anticipated first.
The price of everything is going up. Chainlink [LINK] The market seemed to be in a period of consolidation. Token managed to breakout over a pattern that lasted for several years.
LINK may not be able to reach its previous highs, but a strong push by the general market can.
Chainlink’s new plan
AMBCrypto’s analysis of the token’s daily charts revealed an interesting development. In 2021, a bullish symmetrical triangular pattern appeared on LINK’s chart.
After that, the price of the token has been averaging within it. It only broke out last week. After the breakout of LINK, its upward momentum decreased.
This is just the start of a brand new chapter. The breakout indicated that there is a possibility of LINK forming a flag pattern.
LINK may reach $50 in the near future if market conditions and LINK’s ATH align.
TradingView
This massive rally could be triggered by a breakout above the bull’s eye in an altcoins season. Recent datasets suggest that altcoin season could arrive sooner than originally expected.
AMBCrypto reported BTC’s dominance was slipping under an important support a couple of days back. The altcoin index rose sharply during this time, which indicates that altcoins may start performing from as early December.
What is there to look forward to in the near-term?
AMBCrypto looked at metrics for the short term, since expecting Chainlink to touch $50 was a long-term expectation.
Notably, LINK’s exchange balance increased sharply, meaning the selling pressure on it was rising — an indication of a price correction.
The NVT ratio of the asset also increased, which is a sign that it has been overvalued. This further suggests a correction. But investors shouldn’t worry as these price corrections are often preceded by a flag.
Glassnode
While Chainlink’s metrics indicated a drop in price, the actual loss dropped sharply. It is possible that the past increases in price of the token prompted investors to take advantage.
We then checked Chainlink’s daily chart for support and resistance areas. Chainlink, at the moment of this writing was testing support at $18.66.
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Even if a test is successful, LINK could be promoted in the next few days.
However, failing the test would push it to $14.9. The token was likely to form a pattern of a bull’s-eye in any situation.
TradingView
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Source: ambcrypto.com
