LINK/USD: Will Consolidation End? Time to Breakout!

• LINK/USD has consolidated for more than six months, with a bearish flag potentially forming.
• Bulls and bears should wait for a breakout before acting.
• The measured move of the horizontal channel is the width of the channel.

LINK/USD: When Will This Consolidation End?

Chainlink provides data to smart contracts on the blockchain, and LINK/USD is in a long-term consolidation following an abrupt selloff.

The Current State of LINK/USD

Both bulls and bears must have lost their patience, but such consolidations are interesting to trade because they usually appear ahead of another big market move. Unlike other cryptocurrencies, LINK did not make new lower lows in the second half of 2022. Instead, buyers appeared on every attempt to trade below $6.

What Can We Expect From 2023?

2023 brought a much-needed rally to the cryptocurrency market. Bitcoin, in particular, surged, and its bullish price action translated into bullish movements on other coins too. Indeed, LINK/USD rallied from $6 to $8, only to meet new sellers there.

Horizontal Channel Analysis

In other words, the price action evolves inside a horizontal channel, and until a breakout, the chances are that it will go nowhere. Whenever a horizontal consolidation appears on a chart, technical traders should look for trending conditions on the left side. In this case, it’s looking like part of a bearish flag pattern.

Conclusion

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Bulls should wait for the price to break above $9.5 before going long; likewise bears must wait for prices breaking bellow this level before acting accordingly. The measured move of this pattern is equal with its width.

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