5 October 2024
Chainlink is currently trading in a bullish pattern that has been developing for at least seven months, capturing the attention of analysts and investors alike. Many are eagerly anticipating Chainlink to surge during this cycle and finally reclaim new all-time highs. The extended consolidation phase has kept traders on edge, as they await a significant breakout.
Renowned crypto analyst Lucky has shared an insightful prediction regarding Chainlink’s potential trajectory. According to Lucky, the key lies in LINK breaking above its current consolidation range, which would set the stage for a strong upward move. He suggests that once this breakout occurs, Chainlink could quickly surge toward a short-term target of $15.
With bullish sentiment building around this major resistance level, Chainlink’s price action in the coming days could be crucial in determining its direction. Investors are closely monitoring the market, watching for signals that LINK is ready to break free from its long-standing range and enter a new phase of growth.
Chainlink Price Action Turning Bullish
Chainlink’s price action has been largely bearish since hitting its yearly high in March, with the asset now stuck in a prolonged consolidation phase. However, many analysts believe this consolidation could be nearing its end. One top analyst, Lucky, has recently shared a bullish technical analysis on X, offering an optimistic outlook for Chainlink.
Lucky’s analysis reveals that LINK is trading within a falling wedge pattern, a formation often associated with potential bullish reversals. According to his chart, Chainlink has touched the lower boundary of this wedge three times, signaling strong support, and now appears to be gearing up for a breakout from its yearly consolidation range. He predicts that this breakout could happen as early as October, potentially triggering a surge in LINK’s price.
Lucky has set several bullish price targets once Chainlink breaks out of this consolidation phase. The first target is $15, followed by more ambitious targets at $19 and $22. These price levels would represent significant gains from Chainlink’s current price and mark a strong recovery from the bearish trend that has dominated most of 2024.
With bullish patterns emerging, investors are closely watching for Chainlink’s next move, anticipating that a major breakout could propel LINK toward these optimistic price targets.
Technical Analysis: Key Prices To Watch
Chainlink (LINK) is currently trading at $11.09 and is testing a key resistance level, the 4-hour 200 moving average (MA) at $11.10, after a 7% surge since Thursday. This level has become a significant hurdle for bulls, as the price has struggled to break above the indicator. For the bullish momentum to continue, LINK must push past this indicator and aim for higher supply zones around $13.
However, the current price action suggests that bulls are finding it difficult to gain strength at this critical level. Should LINK fail to break above $11.10 and reclaim the higher resistance, a correction may follow. In that scenario, the price could dip to a lower demand zone, with the next key support level at $9.2.
The coming days will likely determine whether LINK can maintain its upward trajectory or see a pullback in price. A successful breakout above the 4-hour 200 MA could signal further gains, while failing to do so may result in a bearish correction.
Featured image from Dall-E, chart from TradingView