Chainlink Breaks Its 450-Day Consolidation Phase, Is It the Beginning of a Bull Run?

Bits Logics Team . 24th Oct 2023
  • Crypto Analyst tweeted that LINK has broken its 450-day consolidation phase. 
  • LINK staggers at the beginning of the week but recovers well towards the end of the week
  • The RSI and Bollinger bands signal LINK is overbought, it could retrace.

A Crypto Analyst and Trader under the Pseudonym Satoshi Flipper tweeted that Chainlink (LINK) has broken the 450-day consolidation. As such, the analyst expects the price of LINK to skyrocket. In particular, LINK has been consolidating above the $5.5 support and below the $9.5 resistance level.

When considering Chainlink’s price movement during the past seven days, it could be noted that LINK has been on CoinMarketCap’s trending list. LINK had rather a horrific start to the week as it could not keep above its opening market price for the first three days of the week. It made higher highs until the seventh day.
LINK/USDT 1-Week Chart (CoinMarketCap)

LINK printed its highest value of $11 today while it reached its lowest price of $7.28 on the third day. Moreover, the chart below gives an overlook of LINK’s consolidation phase for the past 450 days.  The Accumulation/Distribution Line (ADL) reads a value of $871M and the line seems to be heading in a downward direction.

LINK/USDT 1-Day Chart (Source: TradingView)

During this phase of consolidation, LINK was heavily dependent on the $6.6 support level. Currently, it has risen exponentially. If this trend continues LINK could go higher and higher.

LINK/USDT 1-Day Chart (Source: Tradingview)

The above chart shows that the LINK has already moved into the overbought region reading a value of 77.3. Hence, there is a possibility that LINK could retrace and come back into the normal range of trading. Moreover, the Bollinger bands prove the same thesis, as LINK has touched the upper Bollinger band. This also suggests that there might be a retracement for LINK. 

Since LINK is rising above the 1:1 Gann line, it is considered bullish. However, the forming red candlestick shows that sellers are entering the market. Hence, LINK may reach out for support from the 2:1 Gann line. LINK could fall abruptly or gradually. Therefore traders may need to take precautions.