Chainlink (LINK) Consolidation Update: Will It Break Free from Its $13

Chainlink (LINK) Consolidation Update: Will It Break Free from Its $13–$26 Range?

Chainlink (LINK) is currently experiencing a period of consolidation, situated within a trading range of $13 to $26. As of the latest updates, LINK showed signs of upward movement but has faced a bearish correction. Understanding the key indicators and market momentum is crucial for predicting Chainlink's next significant move.

Key Takeaways

Chainlink (LINK) is trading between $13 and $26, indicating a consolidation phase.
Recent trading has shown a low of approximately $15.23, with current prices around $16.03.
Key indicators suggest weakening bullish momentum, with potential for either upward or downward movement.
A breakout beyond $26 could signal a bullish trend, while a drop below $13 may indicate a bearish trend.

Chainlink (LINK) Consolidation Update: Will It Break Free from Its $13–$26 Range?

Current Market Situation

Linked traded at approximately $16.13 in the early hours; however, it faced a bearish correction, resulting in a daily low of around $15.23. At the time of this report, Chainlink is priced at $16.03, and its daily trading volume has decreased to $746.31 million. In the past 24 hours, there has also been $1.49 million worth of LINK liquidated from the market.

The Ali chart highlights that Chainlink is currently trading in a consolidation range between $13 and $26, forming a symmetrical triangle pattern. This range is known as a "no-trade area," where indecisiveness reigns, and the price could shift in either direction. A significant price move is expected once LINK either breaks above the $26 mark or below the $13 threshold.

Will the Bulls Step In to Lift Chainlink?

The Moving Average Convergence Divergence (MACD) indicator for LINK is below the signal line and close to the zero line, suggesting a weakening bullish momentum. Although the overall trend appears slightly positive, a bearish crossover could indicate a potential short-term pullback if the MACD continues to decline.

LINK chart (Source: TradingView)

Moreover, the Chaikin Money Flow (CMF) indicator, currently at 0.04, points to slight buying pressure in the market. While capital is flowing into Chainlink, the momentum is currently insufficient to confirm a strong bullish trend. An increase past 0.1 would indicate stronger accumulation.

When looking at the Relative Strength Index (RSI), Chainlink sits at 53.25, indicating a neutral to mildly bullish condition, with neither overbought nor oversold signals. A rise above 60 would bolster the uptrend, while a drop below 50 could suggest a growing downtrend. The Bull Bear Power (BBP) reading stands at -0.10, indicating that seller strength is present, although the negative value is minimal, reflecting weak bearish momentum. A movement into positive territory would empower buyers to reclaim market control.

With the current bearish price action, LINK could potentially drop to the support zone at $15.95. Should the downward correction intensify, further declines to $15.87 or lower could occur. Conversely, a reversal might build bullish momentum, pushing the price past the resistance level of $16.11. Continued upward movement could invigorate Chainlink bulls, potentially retesting the $16.19 resistance level.

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