#crypto2023 LINK price action displays a potential cup and handle forming in the daily chart.
The uptrend challenges the channel’s resistance, teasing a breakout rally in Chainlink.
The LINK price may reach the $10 mark upon breakout.
Despite the sharp fall in the bear market of 2022, the LINK price manages to hold off further correction with a channel formation. With a slightly diagonally bearish channel, the consolidation coils up huge trend momentum for Chainlink to give massive returns on a breakout.
Moreover, with strong fundamentals, the Chainlink price predictions anticipate a bullish breakout.
Taking multiple bounces within the channel, the recent early reversal in LINK price forms a rounding reversal pattern. With a neckline coinciding with the overhead resistance trendline, the altcoin hints at an uptrend continuation.
Currently, the LINK coin price trades at $7.732, with a growth of 4% in the last 24 hours. As of now, the daily candle forms a bullish sprouting to prolong the last night’s spike. Therefore, the price action indicates the overall trend momentum, and the market sentiment is extremely optimistic.
However, the LINK price action also displays the rounding reversal facing opposition from the resistance trendline. Nevertheless, with lower price rejection, the recovery rally may continue to form a cup-and-handle pattern.
Technical indicators:
EMA: The 50 and 200-day EMAs give a golden crossover, teasing a potential breakout rally.
DMI indicator: With a small downside tick, the ADX line remains high, reflecting a strong momentum. Further, the VI lines struggle to avoid a bearish crossover.
Will LINK Price Sustain Above $10?
The LINK price trend is expected to continue on an upward trajectory, as the price has formed a rounding bottom and is now teasing a breakout from the channel. A breakout of the trendline, or the $7.79 level, would unleash a high-momentum rally in the price of Chainlink.
The $LINK price rally could reach the 200-week EMA at $9.065. However, a breakout of the year-long range will show more impressive bullish moves. Therefore, the altcoin price could reach $12.75.
On the other hand, a rejection at the trendline could invalidate the bullish structure and restart the bearish cycle within the range. If the price breaks down from $5.85, the downtrend could potentially reach $5.66.#Layer2 #BTC #ETH #opbnb
