Chainlink Price Ready to Surpass $20?
The twelfth largest cryptocurrency, Chainlink, has shown impressive performance in February 2024. It experienced a 45% growth, with its price jumping from $13.6 to a high of $19.79 within two weeks. However, the LINK price has been relatively quiet recently, indicating a period of consolidation after the rally. The question now is whether this sideways movement will lead to further growth or potentially a correction.
Consolidation and Pennant Pattern
Despite the recent uptick in the broader market, which pushed the bitcoin price above $46,000, Chainlink has mostly traded sideways. This consolidation is reflected in the 4-hour time frame chart, where two converging trendlines indicate the formation of a pennant pattern. In an established uptrend, this pattern provides a breather for bullish momentum to recover before continuing its upward trajectory.
Whale Accumulation and Bullish Note
A recent highlight from crypto analytics firm Intotheblock reveals that a mysterious crypto whale has been accumulating LINK tokens. Over the past five days, this whale has transferred a total of 4,556,684 LINK (valued at approximately $83.6 million) from Binance into 55 newly created wallets. This accumulation by a significant player in the market suggests growing interest in Chainlink and could potentially signal upcoming market movements.
Potential Breakout and Targets
Despite the current consolidation phase, if the LINK price breaks above the overhead trendline and closes with a 4-hour candle, it could provide a launchpad for further recovery. In this scenario, buyers may push the price towards $20.5 and potentially even reach $23.
Technical Indicators
- Experimental Moving Average: The LINK price is currently above the daily EMAs (20, 50, 100, and 200), indicating a bullish near-term rally. The rising price finds support from the slopes of the 20 and 50 EMA.
- Relative Strength Index: The daily RSI slope hovers around 50%, reflecting a neutral sentiment among traders.
Source: Coingape
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