Analyst Predicts Chainlink Rally To $20 Based On This Pattern
November 21 2023 - 5:00PM
NEWSBTC
An analyst has pointed out how Chainlink might be breaking out of a
bull flag right now, which could suggest a rally toward $20.
Chainlink Is Escaping Out Of A Bull Flag Pattern Currently In a new
post on X, analyst Ali pointed out a breakout that may be forming
in the LINK price chart. The relevant technical pattern here is the
“bull flag,” which, as its name implies, looks like a flag on a
pole. This pattern forms when the asset’s price goes through a
pullback after seeing a sharp rally and consolidates inside a
region. The initial trend acts as the “pole,” while the parallel
trendlines of the consolidation region make up the “flag.” Related
Reading: Solana Forms Sell Signal, Decline To $30 Ahead? The flag’s
length (the distance between the parallel trendlines) is always at
most half the length of the pole. If it’s not, then the pattern
isn’t that of a bull flag. Inside the flag, the price feels
resistance at the upper line and support at the lower one. A
successful break out of the resistance zone generally indicates
that the asset is ready to continue the initial uptrend. According
to the analyst, the chart below shows that such a pattern is
forming for Chainlink. The bull flag pattern that the price of LINK
is displaying right now | Source: @ali_charts on X As displayed in
the graph, Chainlink had earlier been consolidating inside what
seems to have been a bull flag, but with the recent surge, the
asset has seen a break out of the pattern. When Ali shared the
chart, LINK had been trading just under the $15 mark. The analyst
had noted that a retest of the breakout zone could happen soon,
around $14. The cryptocurrency has indeed made such a retest since
then, as its price has observed some retrace. Ali believes the
price could rally towards the $20 mark, continuing the bullish
momentum from earlier. From the current asset price, such a jump
would imply profits of almost 42% for Chainlink. It remains to be
seen whether the bull flag pattern holds for the cryptocurrency
this time and if a return to a bullish trend occurs. LINK Has Seen
A Rally Of 185% In The Past Month Regardless of the recent pullback
that the asset has seen from above the $16 mark, its returns for
the last 30 days are still incredible, as they currently stand at a
whopping 85%. Related Reading: Bitcoin Fees Soar Above Ethereum’s
As Investors Flock To Ordinals-Backed Assets The below chart shows
what the performance of the asset has looked like during this
period. The value of the cryptocurrency has shot up during the past
few weeks | Source: LINKUSD on TradingView With such large returns,
Chainlink has naturally outperformed most of the other top assets
recently, and it’s no wonder that the cryptocurrency has also
significantly improved its standing in the market cap list. Looks
like LINK has a market cap of almost $7.9 billion at the moment |
Source: CoinMarketCap Featured image from Shutterstock.com, charts
from TradingView.com
ChainLink Token (COIN:LINKUSD)
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ChainLink Token (COIN:LINKUSD)
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