Can $7.5 Breakout End Ongoing Consolidation?

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 The Chainlink(LINK) price signals the end of a seven consolidation phase with a bullish breakout from $7.5. This range breakout should trigger a directional rally that may surpass the $8 psychological level, but what’s the next target?

Key points: 

The 20-and-50-day EMA is nearing a bullish crossover
The LINK price faces selling pressure at $8 resistance
The intraday trading volume in the LINK coin is $984.8 Billion, indicating a 63.5% gain.

LINK/USDT ChartSource- Tradingview

On June 10th, the LINK buyers’ failed attempt to surpass the $9.65 resistance resulted in a 37% drop. This downfall retested the May low support zone at $5.7 and started walking a lateral path.

The LINK price has resonated between the $5.7 and $7.5 barrier for nearly seven weeks. Furthermore, with improving market sentiment, the altcoin gave a decisive breakout from the aforementioned resistance.

Over the past three days, the LINK chart shows steady growth in volume activity, indicating market participants are looking for buying opportunities. Thus, a daily candlestick closing above the $7.5 mark should flip this breached resistance into a suitable footing to extend the ongoing rally.

If the coin price sustains the expected retest, the potential bull run should surpass the minor resistance of $8 and 24% higher to $9.65.

Though things are looking bullish for the Chainlink (LINK) coin, if buyers fail to sustain above the $7.5 resistance, the bullish thesis would invalidate, and prices may return to $5.7.

Technical Indicator

DMI indicator: The DI lines regain a bullish alignment with the recent crossover event reflecting an uptrend in motion. Furthermore, a positive turnaround in the ADX line suggests sustained buying from traders.

EMA: The bull run exceeds the 20-and-50-day EMA, increasing the bullish influence over the chart. Thus, the possibility of a bullish crossover between the said EMAs increases sharply.

Resistance levels- $8 and $9.65
Support levels- $7.5 and $5.7

From the past 5 years I working in Journalism. I follow the Blockchain & Cryptocurrency from last 3 years. I have written on a variety of different topics including fashion, beauty, entertainment, and finance. raech out to me at brian (at) coingape.com

The presented content may include the personal opinion of the author and is subject to market condition. Do your market research before investing in cryptocurrencies. The author or the publication does not hold any responsibility for your personal financial loss.

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