- Chainlink is trading within a falling wedge, a pattern historically linked to bullish reversals.
- LINK’s immediate resistance lies between $21–$22; breaking this could lead to a surge toward $30.94.
- Liquidation trends and accumulation suggest strong market support for a potential breakout.
LINK has become an object of discussion in the meantime due to its recent prices. On the daily scale, the cryptocurrency is trading within a clear and clearly defined falling wedge pattern which is a reversal pattern.If LINK manages to break above the descending resistance of this wedge, analysts are eyeing a potential target of $30.94, representing a significant upward move from its current levels.
Current Market Dynamics
Currently, LINK is trading around $19.96 and has been swinging in the range of the wedge formation in the last few weeks. The falling wedge bottoms contain two converging trend lines of which the upper trend line plays a role of resistance and the lower line one of support.
In the past, structures of this kind tended to experience an upward breakout once the resistance line was crossed.The volume is also very informative since the rising demand near the line of resistance might cause the breakout.
Liquidation Trends and Market Sentiment
A glance at recent liquidation data provides additional context.This has been evident from the LINK Total Liquidations Chart where we seem to observe a slight increase in the long liquidations over the past month. However, LINK has kept holding the support levels which is literally good for the traders who are longing for the bounce back.
Source: Coinglass
The liquidation chart reveals that the yellow price trendline shows—-the asset’s ability to bounce quickly back when its prices drop. That implies that the market players are accumulating the LINK during periods of lower prices, thus supporting a theory of bullish rally shortly.
Key Levels to Watch
The first level of resistance on the wedge pattern is the $21 –$ $22. If LINK surges above this level with volume, then the breakout will be plausible towards $30.94. On the other hand, if the bulls fail to push the price back upwards, LINK could fall to the lower end of the wedge.The technical structure of Chainlink holds a rather promising outlook for trading as well.While risks remain, the falling wedge pattern and strong support levels hint at a promising price recovery in the near future.
The post Chainlink Price Bounces Back: Why Traders Are Eyeing a $30 Target appeared first on Cryptonewsland.
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