There is a bullish possibility that Chainlink price currently caught within an accumulation phase that will be followed by further upside
Chainlink price action has been rather lackluster as of late, with Bitcoin’s indecisiveness not providing altcoins with much momentum. LINK has been caught within a bout of sideways trading throughout the past few days, with buyers and sellers largely reaching an impasse as the crypto ranges between $10.50 and $12.00.
Until one of these levels is decisively broken above or below, it will likely continue seeing relatively lackluster price action as bulls and bears both try to gain control of its near-term outlook. There is a bullish possibility that the cryptocurrency is currently caught within an accumulation phase, followed by further upside.
Chainlink price consolidates alongside Bitcoin as Altcoin market stagnates
At the time of writing, Chainlink is trading down marginally at its current price of $10.71, which is around where it has been trading throughout the past few days. LINK’s ongoing consolidation phase has come about primarily due to Bitcoin’s seen, as the benchmark crypto has been trading between $11,400 and $11,600 for the past few days.
Until Bitcoin gains some clear directionality, the entire altcoin market – including Chainlink – will likely continue consolidating. This is one of the few times where LINK has seen a correlation to BTC that is this strong, as it typically incurs both uptrends and downtrends independent of the aggregated market.
This trend may soon come to an end, and it may begin moving in tandem with the rest of the market – for better and worse.
While speaking about where he thinks Chainlink may trend next, crypto analyst Crypto Michael explained that this consolidation phase could mark accumulation, which would suggest that a move higher is imminent.
He stated:
“LINK… Still the same view on this one. Expecting a further accumulation period on this one, too, just the same as the previous impulse wave. Clear resistances at $12.35 – $12.50 and $13.75 – $14. Long areas at $10 and $8.75 – $9.”
Source: LINKUSD on TradingView
If Bitcoin faces any intense downwards pressure in the near-term, LINK’s price may also incur some turbulence, causing it to slide down towards its recent lows.
Read more:
- Santiment: The Top 100 Non-Exchange Addresses Grown By 5% In The Last Year, While Chainlink Price Looks Set To Retest $10.8 To $10.9
- The Three Reasons Why Chainlink Price Exploded By 42% Since October 7 And Why It Could Continue Its Uptrend