Chainlink at a Crossroads: Will LINK’s Bullish Falling Wedge Lead to a Breakout? Key Metrics to Watch
Chainlink (LINK), the decentralized oracle network, finds itself in a critical juncture as it grapples with a potential bullish reversal, according to crypto analyst Daan Crypto Trades. In a tweet, the analyst shared a chart highlighting Chainlink’s price action and the pivotal levels that could dictate its future trajectory.
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The Descending Trendline and Support Zone
Daan Crypto Trades’ analysis centers around a descending trendline, drawn by connecting the lower highs of Chainlink’s price action. “A descending trendline is drawn connecting the lower highs of the price action,” the analyst explained. “This line indicates a downtrend, as each peak in price is lower than the previous one.”
However, the analyst also identified a crucial support zone between $15.00 and $15.50. “The green box indicates a support zone, a price level where the asset has previously experienced buying interest, preventing the price from falling further,” Daan Crypto Trades elaborated.
The Potential Falling Wedge Pattern
Significantly, the combination of the descending trendline and the support zone appears to form a bullish falling wedge pattern. “The combination of the descending trendline (yellow line) and the support zone (green box) seems to be forming what technical analysts might interpret as a falling wedge pattern,” the analyst noted.
Moreover, falling wedge patterns are often considered bullish signals, indicating a potential reversal of the current downtrend if the price breaks out above the trendline. Furthermore, as Daan Crypto Trades stated, “This pattern is often considered bullish and can indicate a potential reversal of the current downtrend if the price breaks out above the trendline.”
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Show more +The Crucial Breakout Level
To confirm a potential bullish reversal, Daan Crypto Trades is closely monitoring the yellow diagonal trendline. “Would like to see this break the yellow diagonal to confirm a potential next leg up,” the analyst remarked.
Consequently, if Chainlink can muster enough buying pressure to break above the descending trendline, it could potentially mark the beginning of a new uptrend.
Current Chainlink Price
According to the latest data from CoinGecko, the price of Chainlink (LINK) is $17.11, representing a -2.96% price decline in the last 24 hours. However, the chart shared by Daan Crypto Trades shows the most recent price as $17.382, with a small positive change indicated by “+0.025.”
As the crypto market watches LINK’s price action, the potential breakout above the descending trendline could prove pivotal in determining the oracle network’s trajectory. With the support zone holding firm, bulls await a move to confirm the potential bullish reversal.
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