Credit: Original article published by Crypto Briefing Blog.

Following an extended stagnation phase, Chainlink sliced through a critical resistance barrier that could see it rise to new record highs.

Chainlink Resumes Bull Rally

Chainlink has a year-to-date return of more than 130% after recently rising to a new all-time high of $27. Despite the significant gains incurred within such a short period, LINK is primed for another leg up.

Following a week-long consolidation period, Chainlink seems to have broken out of an ascending triangle that developed on its 2-hour chart. Moving past the $25.50 resistance level drastically increased the odds for LINK’s market value to surge by nearly 28% towards $33.

This target is determined by measuring the height of the triangle’s y-axis and adding it to the breakout point.

Chainlink US dollar price chart
LINK/USD on TradingView

Despite the high probability of an upward breakout, the Tom Demark sequential indicator estimates that Chainlink could retest the triangle’s x-axis.

This technical index presented a sell signal in the form of a green nine candlestick on LINK’s 2-hour chart.

Chainlink US dollar price chart
LINK/USD on TradingView

A recent spike in downward pressure appears to have validated the bearish formation. Now, LINK could retrace further before the uptrend resumes.

Sitting on Top of Stable Support

Even if sell orders continued piling up, Chainlink’s downside potential could be capped by the $24.55 support level, based on IntoTheBlock’s In/Out of the Money Around Price (IOMAP) model. Here, roughly 9,000 addresses had previously purchased more than 4 million LINK.

Such a significant demand barrier may have the ability to contain any attempt by the bears to control Chainlink’s price action.

Indeed, holders within this range who sit “In the Money” may do everything to prevent their investments from going into the red. They may even buy more tokens to help LINK rebound to higher highs.

In/Out of the Money Around Price by IntoTheBlock

It is worth mentioning that at press time, Chainlink has pulled back to $25.75, which is too close to the triangle’s x-axis at $25.50. Thus, it is reasonable to believe that the TD setup’s outlook has been completed, and now LINK is bound for higher highs.

Disclosure: At the time of writing, this author owned Bitcoin and Ethereum.

This article is strictly for informational purposes only. It is not a direct offer or solicitation of an offer to buy or sell, or a recommendation or endorsement of any products, services, or companies. CryptosOnline.com does not provide investment, tax, legal, business or accounting advice. Neither the company nor the author is responsible, directly or indirectly, for any loss or damage caused or alleged to be caused by, or in connection with, the use of or reliance on any content, goods, services or opinions mentioned in this article.

#Bitcoin #Crypto #Cryptocurrency

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