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Growing out of a falling channel, Chainlink (LINK) is preparing to rally beyond $20 in the new crypto bull run.
As the crypto market prepares for the next stage of a bull run, Chainlink signals a massive breakout rally on its way. The recent move above a long-standing resistance trendline of a falling channel pattern indicates a potential bullish trend for Chainlink.
Currently, Chainlink is encountering resistance from the 200 EMA, but prices are primed for a post-retest reversal that could extend the bullish momentum. Will this rally push prices beyond the $20 psychological threshold? Let’s explore.
Chainlink Channel’s Breakout
In the daily chart, the recent bullish reversal from the $8 mark has led to a bullish trend within the long-coming falling channel pattern. With three consecutive bullish candles forming a triple white-soldier pattern this week, Chainlink surpasses the overhead trendline.
The triple white-soldier pattern accounts for a 15% surge. However, the breakout rally fails to surpass the 23.60% Fibonacci level at $12.438. The dynamic resistance of the 200 EMA, coinciding with the Fibonacci level, plays a crucial role. Facing bearish opposition, the Chainlink price shows an intraday pullback of 2.59%.
However, LINK trades at $12.072 and maintains dominance above the 100-day EMA and the broken resistance trend line. This increases the possibility of a post-retest reversal to cross above the resistance confluences.
Additionally, the recent bullish influence has resulted in a crossover between the 20-day and 50-day EMAs. The MACD and signal lines also show positive crossovers. With increased buying pressure, technical indicators suggest a potential uptrend for Chainlink.
Will Chainlink Cross $20?
According to Fibonacci analysis, a move above $12.43 could propel Chainlink’s price to the 50% and 78.60% Fibonacci levels at $15.64 and $19.11, respectively. Conversely, key support is found near the 50-day EMA at $11.39.
As the broader market recovers, Chainlink could potentially reach the apex of the falling channel pattern near $21.71. Thus, the likelihood of Chainlink surpassing the $20 psychological mark in the upcoming November rally has significantly increased.