• Chainlink price is primed for a volatile move as it sits in a pivotal point.
  • A bullish continuation pattern projects 33% gains post-breakout.
  • The health of the previous uptrend favors a resolution to the upside.

Chainlink price has fluctuated in an ascending triangle since late February. The volume profile during the triangle has trended lower, adding certainty that the selling pressure was exhausted. 

Chainlink price triggers a buy signal

Critical to the ascending triangle evolution has been the constant support at the 50-day simple moving average (SMA). In fact, there have only been three daily closes below this trend following indicator since the February 23 low.

On Wednesday, Chainlink price rose over 11% and activated the SuperTrend indicator’s buy signal. These type of bullish formations have occurred other times in the ascending triangle, but the lastest one came at 50-day SMA support, thereby adding credence to its relevance.

If traders can propel LINK above the March 9 high at $32.00, a rally should materialize that will carry the token to the all-time high at $36.92, delivering a 17% gain for traders. The next major profit target is the topside trendline that runs thoughout all the major peaks since February 2020, including the most receant record high. 

The exuberant profit target for LINK is the 1.382 extension level at $43.00, representing a 36% gain from the current price levels, and it surpasses the measured move target of $42.00.

LINK/USD daily chart

LINK/USD daily chart

On the downside, the 50-day SMA will provide some initial support, but it won’t be much help if heavy volume accompanies a reversal of the breakout. Substantive support comes into play at the price region defined by the 100-day SMA currently at $22.10 and the February low at $21.00.

Note: All information on this page is subject to change. The use of this website constitutes acceptance of our user agreement. Please read our privacy policy and legal disclaimer. Opinions expressed at FXstreet.com are those of the individual authors and do not necessarily represent the opinion of FXstreet.com or its management. Risk Disclosure: Trading foreign exchange on margin carries a high level of risk, and may not be suitable for all investors. The high degree of leverage can work against you as well as for you. Before deciding to invest in foreign exchange you should carefully consider your investment objectives, level of experience, and risk appetite. The possibility exists that you could sustain a loss of some or all of your initial investment and therefore you should not invest money that you cannot afford to lose. You should be aware of all the risks associated with foreign exchange trading, and seek advice from an independent financial advisor if you have any doubts.

Cryptos feed Join Telegram

Recommended content


Recommended Content

Editors’ Picks

Why the Solana price could wipe out all returns since August

Why the Solana price could wipe out all returns since August

Solana shows a significant uptick in volume amidst the recent decline. The largest candle within the current downtrend and consolidation belongs to the bears. Solana price may be consolidating before it makes a move south.

More Solana news

XRP Price Prediction: One more pump then a dump

XRP Price Prediction: One more pump then a dump

XRP price has established two legs of a triangle. If the technicals are correct, XRP could rally to $0.56 and then experience a sharp sell-off. Invalidation of the triangle thesis targeting $0.56 iis a breach below $0.4564.

More Ripple news

Cardano: $1 is a fever dream for ADA as Vasil hard fork fails to trigger buying pressure

Cardano: $1 is a fever dream for ADA as Vasil hard fork fails to trigger buying pressure

After Ethereum’s Merge, Cardano’s Vasil hard fork was the most anticipated event for the crypto community this year. Surprisingly, both the events, while developing the network further, acted as a disappointment for the investors.

More Cardano news

Ethereum Classic PoW hype dissipates as hash rate declines by almost 50% in 10 days

Ethereum Classic PoW hype dissipates as hash rate declines by almost 50% in 10 days

The Proof of Work (PoW) vs. Proof of Stake (PoS) debate heated up this month as Ethereum mainnet officially shifted to the PoS consensus method. However, not everyone was a taker since many of the miners preferred the older methods instead of switching to staking.

More Ethereum news

Bitcoin makes a bullish comeback amid regulatory tension, but lacks confirmation

Bitcoin makes a bullish comeback amid regulatory tension, but lacks confirmation

Bitcoin price takes the first step to recovery but needs solid confirmation that will arrive after a flip of the $19,539 level into a support floor. After a successful flip, investors could expect a move up to an intermediate hurdle at $20,737.

Read full analysis

BTC

ETH

XRP