The ChainLink price is trading broadly sideways. However, there are clues that buyers are present below the market. This could be a good sign for LINK.
ChainLink is trading at $16.66, down just under $0.58, (-3.04%).
For obvious reasons, it was a quiet start to the week for cryptocurrency traders. And after a strong performance on Saturday, the markets died down for the next two days.
The US enjoyed the Independence Day holiday on Sunday, which meant for a change there was a distinct lack of fireworks in the market over the weekend.
Many digital assets experienced subdued trading conditions, and price action across the board was mostly horizontal.
That has been the case for the ChainLink price for the past week. Despite breaking out of a strong downtrend, LINK has failed to make progress above $20.00. Although, I am encouraged by a series of higher lows over the last two weeks. Furthermore, the trading volume data leads me to believe there is accumulation happening on price dips.
LINK price prediction
Looking at the 4-hour chart, we see the ChainLink price is in the process of a laboured recovery from the 22nd of June $14.95 low. The initial rebound took LINK to around $19.50 before reversing lower to $15.80. Attempt number two got as high as $20.50 before failing. Although this time, the decline was met with buying at $16.30.
Saturday’s positive sentiment triggered that most recent trip towards $20.00, but for the third time, the rally stalled.
However, this latest decline was not as deep as previous reversals, and now LINK is again pointing higher.
During this upswing, the trading volume has notably increased. This suggests that buyers have upped their price limit. This should be taken as a positive sign. But we still need to see how LINK performs when it approaches $20.00. I will be further encouraged if the momentum has the capacity to clear the 29th of June high at $20.50.
The series of higher highs and higher lows has created a bear flag formation. This can be viewed as either a continuation pattern in a bear market or a turning point higher. The top end of the channel is visible at $21.80, and if ChainLink manages to scale this trend, it should make $26.50 a real possibility in the coming days.
However, the lower end of the rising band is situated at $17.70. Therefore, If the price falls below this point, the bullish outlook becomes invalid.
Conclusion
Clearly, May’s washout has undoubtedly dented the confidence of buyers. However, It does feel like confidence is slowly returning to the market. Overall, I think the appetite for altcoins is still there, but investors are waiting for signs the market can hold a sustained rally. When that comes, they will likely chase the prices higher. Until then, the prices will remain skittish.
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ChainLink price chart (daily)
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