- Chainlink is nearing a potentially massive breakout pointing to highs above $ 40.
- The IOMAP chart shows a stronger front on the chain based on the immediate robust support.
- Closing the day below $ 30 may delay the rebound and force Chainlink to retest the support at $ 27.
Chainlink is consolidating after hitting a barrier below $ 32. The sideways price move means that the bullish and bearish momentum is canceling out. However, LINK appears to have a bullish impulse based on the short term analysis.
Chainlink stabilizes at 36%
The 4 hour chart has a vibrant ascending triangle printed on it. This pattern is considered bullish and forms after a significant price movement followed by consolidation. A horizontal line connects the relatively same peaks, while an ascending trendline connects the higher lows.
A breakout is usually expected when the triangle matures. Ascending triangle patterns suggest a colossal but precise eruption target, measured from the highest to the lowest point. For example, the graph shows that Chainlink could swing 36% higher and trade a new record high of $ 44.
LINK / USD 4 hour chart
Chainlink needs to be above the 50 Simple Moving Average (SMA) and 200 SMA on the 4-hour chart to sustain the uptrend. Similarly, the Moving Average Convergence Divergence (MACD) confirms the uptrend as it approaches the transition to positive territory.
The IOMAP model strongly reinforces the uptrend by showing the lack of robust resistance. In other words, a breakout can become massively bullish and pave the way for gains above $ 40.
On the other hand, the model brings to light immense zones of resistance. For example, the region from $ 29 to $ 30. Almost 20,600 addresses had previously bought around 50.4 million LINKs here. Other support zones are massive, but not as robust. Thus, the path with the least resistance is directed upwards.
Chainlink IOMAP diagram
Look at the other side of the picture
Declines become visible again when LINK closes the day below the confluence of 50 SMA and 200 SMA on the 4-hour chart. In addition, these losses are confirmed if the MACD does not make a significant move above the center line. On the other hand, if the price cuts through the lower trend line, massive losses will occur.
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