During the US market session on Wednesday, the crypto market saw a slight decline. Bitcoin Prices has struggled to stay above $95,000. As the market sentiment is yet to confirm the end-of-correction trend, most major altcoins including LINK are witnessing an overhead supply. However, Chainlink price is poised for a major breakout amid a key EMA crossover and strong support.
According to CoinGecko According to the data, LINK price is trading at $17.8 with an intraday loss of 2.14%. Currently, the market capitalization of the asset stands at $11.2 billion, while the 24-hour trading volume hovers at $1.5 billion.
- An emerging support trendline is behind the current recovery trend in Chainlink price.
- LINK price’s potential breakout from $19 will signal the end of the 7-month consolidation trend.
- The 20 and 50 day exponential moving average provides immediate support to the crypto market amid a market correction.
Chainlink price action hints at final pullback ahead of $19 breakout
Amid the crypto market correction, Chainlink’s price recovery halted its bullish momentum at the $19 level. The 4-hour chart shows several rejection candles at the aforementioned level, and sellers are actually defending this resistance.
If the selling pressure persists, the LINK Price could plunge 7.8% before testing proper ascending trendline support. The dynamic support intact since the beginning of November constitutes an accumulation zone favorable to buyers.
A potential reversal of this support could signal renewed bullish momentum and reinforce a breakout of multi-month resistance at $19.
LINK targets $28.8 as inverted head and shoulders pattern emerges
An analysis of the daily chart shows that Chainlink price is teetering below a key resistance from the neckline of the inverted head and shoulders pattern. It is made up of three hollows: a lower lower (the “head”) between two higher lowers (the “shoulders”).
A breakout above the neckline signals a potential uptrend, with the price target typically equal to the vertical distance from the head to the neckline. A bullish crossover between the 100 and 200 day EMAs could further accelerate the recovery momentum.
Thus, the post-breakout rally could surge 52% to challenge the $28.8 high.