Chainlink (LINK) has a great year-to-date return of more than 130 percent, after recently increasing in value to a new record-high of $27. In spite of the fact that the major gains took place within a short period, LINK is prone to increase even more.
Upward Trends Predicted
After a week-long consolidation period, the coin seems to have passed an ascending triangle that appeared on its 2-hour chart. Breaking past the $25.50 resistance line majorly increased the chances for LINK’s market value to increase by almost 28 percent towards 33 percent. This target is fixed by measuring the height of the triangle’s y-axis and adding it to the breakout mark.
In spite of the high possibility of an upward breakout, the Tom Denmark sequential indicator considers that LINK could retest the triangle’s x-axis. This technical indicator presented a sell signal in the form of a green nine candlestick on Chainlink’s 2-hour chart.
A recent increase in downward pressure appears to have confirmed the bearish formation – now, the coin could retrace further before the uptrend takes up again.
Sitting on Top of Stable Support
Although sell orders continued to appear, Chainlink-s downside potential could be more limited by the $24.55 support level, according to the IntoTheBlock’s In/Out of the Money Around Price (IOMAP) model. Here, almost 9,000 addresses had previously bought more than 4 million LINK.
Such a major demand barrier may have the capacity to contain any attempt by the bears to manipulate LINK’s price action. The holders within this range who sit ‘In the Money’ may try to do everything to prevent their investment from reaching the red. They may even purchase more tokens to help LINK rebound to higher levels.
In the last 24 hours, Chainlink has pulled back to $25.75, which is also near the triangle’s x-axis at $25.50. Therefore, it is only reasonable to believe that the TD setup’s perspective has been completed, and now the coin is prone to attain new highs.