Following a period of upward movement in prices, Chainlink [LINK] appears to have settled into a phase of consolidation. However, the token recently broke out of a long-standing pattern.
While the upcoming days may see some calm, a positive push from the broader market could propel LINK to reach new peak levels.
Chainlink’s Future Strategy
An examination of the token’s daily chart by CryptoCrypto unveiled an intriguing development. In 2021, a bullish symmetrical triangle formation emerged on LINK’s chart.
Since then, the token’s value has been confined within this pattern, until breaking out just a few days ago. Following the breakout, LINK’s upward momentum decelerated.
Nonetheless, this breakout could signify the inception of a new phase. It hinted at the possibility of LINK forming a bullish flag pattern.
If this pattern unfolds and market conditions cooperate, LINK could possibly aim for a retest of its all-time high and even reach $50 in the upcoming months.
An upward breakout from the potential bull flag amidst an altcoin season might set off a substantial rally. Recent data indicated that an altcoin season could commence sooner than anticipated.
As per CryptoCrypto’s recent report, BTC’s dominance fell below a significant support level. Concurrently, the altcoin season index surged, suggesting that altcoins could start gaining prominence as early as December.
Short-Term Prospects
While the target of Chainlink reaching $50 is a longer-term projection, CryptoCrypto delved into the metrics to understand the immediate outlook.
Notably, there was a notable rise in LINK’s exchange balance, indicating an escalation in selling pressure — a sign that a price adjustment might be on the horizon.
The NVT ratio also saw a spike, typically signaling an overvaluation of an asset and hinting at a potential pullback. However, investors need not panic, as such corrections often precede the formation of a flag pattern.
Interestingly, despite indications of a price decline from Chainlink’s metrics, its realized loss saw a considerable drop. This could be attributed to the token’s prior price surges, prompting more investors to capitalize on profits.
Next, an examination of the token’s daily chart was conducted to identify short-term support and resistance levels. At the time of writing, Chainlink was scrutinizing its support level at $18.66.
A successful test of this support could pave the way for LINK to make further gains in the upcoming days.