The Chainlink price pumped 15% over the past 24 hours to trade at $18.14 at press time.
The Chainlink Price Rises Above Consolidation Channel
Daily chart for LINK/USDT (Source: TradingView)
A symmetrical triangle that had formed on LINK’s daily chart was validated in the last week, which caused the Chainlink price to rocket past the $17.200 resistance level. The last time the altcoin managed to break above this threshold was back on April 4, 2022. Since then, it has been in a downward trend. As a result, the break above this barrier is a significant bullish development. However, before traders decide to go long on LINK, they may want to wait for the Chainlink price to establish a position above this mark first.
The previous breaks above $17.200 were followed by a correction in the following 48 hours. Therefore, it may be wise to wait for LINK to close a daily candle above $20.755 before buying into the crypto. This could signal a major bullish shift in the crypto’s trend.
If the Chainlink price fails to close a daily candle above $20.755 within the next 3 days, or it falls back below the $17.200 mark, it may be at risk of correcting down to $14.200 in the short-term. Continued sell pressure could even drag LINK below this key price point to potentially reach as low as $11.895.
Technical indicators on LINK’s daily chart suggest its price may continue to rise in the next 24-48 hours. The Moving Average Convergence Divergence (MACD) and the Relative Strength Index (RSI) indicators are flagging bullish. The MACD line is breaking away above the MACD Signal line, which may signal that LINK’s bullish trend is growing stronger. In addition to this, the RSI is breaking away above its Simple Moving Average (SMA) line, which could signal that buyers are growing stronger against sellers. However, the RSI is approaching overbought territory. Given this and the trend seen during the previous breakouts above $17.200, there is the possibility that LINK may correct in the next 2 days. A potential early indication of this pullback could be if the RSI line slopes negatively throughout the next 48 hours.
The information presented in this article is for informational and educational purposes only. The article does not constitute financial advice or advice of any kind. Ecoinimist is not responsible for any losses incurred as a result of the utilization of content, products, or services mentioned. Readers are advised to exercise caution before taking any action related to the company.
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