• Chainlink provides data to smart contracts on the blockchain, and LINK/USD has been consolidating for more than six months.
• Bulls and bears must wait for a breakout before acting as the price action is inside a horizontal channel.
• The measured move of the horizontal channel is the width of it, so traders should look out for a breakout in either direction.
LINK/USD: When will this Consolidation End?
Chainlink provides data to smart contracts on the blockchain, and LINK/USD has been consolidating for more than six months. Since late 2022, buyers appeared on every attempt to trade below $6, which is a bullish accomplishment. On the flip side, every bounce was not strong enough to break the previous lower high, so bears still appear to be in control.
The Horizontal Channel
2023 brought a much-needed rally to the cryptocurrency market and with it came an increase in LINK/USD from $6 to $8 only to meet new sellers there. This price action has evolved into a horizontal channel where both bulls and bears must wait for a breakout before acting as such consolidations usually appear ahead of another big market move.
Bearish Flag Pattern
Whenever a horizontal consolidation appears on a chart, technical traders should look at past trends on that coin’s chart. In this case, there is evidence of bearish trend meaning that this could be part of a bearish flag pattern rather than just carving out a bottom.
Targetting The Measured Move
The measured move of this horizontal channel is its width so traders should look out for any kind of breakout in either direction before targeting their next trade accordingly. For bulls they must wait until LINK/USD breaks above $9.5 or ideally above $10 before going long while bears should target new lows if LINK fails at current levels or starts trading below them again with conviction .
Until then both sides must remain patient as such consolidations can often produce huge moves once they break out one way or another but until then all eyes are on LINK/USD’s next move as we await further confirmation of either side’s dominance over the other when it comes down to trading activity in this cryptocurrency pair .