Chainlink Price Stuck Between $9 And $12, LINK Mirrors Broader Market Trends
- LINK price stuck between $9 and $12, mirroring broader market trends.
- Bollinger Bands suggest potential volatility surge and breakout opportunity.
- Price targets: possible rise to $15.6 or continued consolidation under $12.3.
Chainlink (LINK) finds itself in a state of limbo, its price action tethered to broader market trends as it continues to move sideways. However, a potential breakout opportunity looms on the horizon, signaled by the convergence of key technical indicators, particularly the Bollinger Bands.
LINKs recent price history has been characterized by a 30-day consolidation phase, with the token oscillating between $9 and $12 throughout much of the previous month.
This pattern of extended sideways movement is not unprecedented for LINK, which has historically exhibited consolidation periods ranging from a brief 32 days to a protracted 83 days.
The Bollinger Bands, a versatile technical analysis tool, offer valuable insights into LINKs current market dynamics. As the bands narrow, indicating a squeeze in volatility, they often presage a significant price movement.
While a similar squeeze in late August initially sparked a rally, bearish macro financial conditions swiftly extinguished this momentum, prolonging the consolidation phase and potentially setting the stage for a more significant future breakout.
Chainlink holders exhibit bearish sentiment
Intriguingly, a key cohort of LINK investors has displayed uncharacteristic bearish sentiment. Addresses holding between 1 million and 10 million LINK have exhibited remarkably sluggish accumulation patterns.
Over the past 11 days, these whale-tier investors have added a mere $40 million worth of LINK to their holdings, despite the tokens relatively low prices.
This hesitancy among major stakeholders could be dampening overall investor confidence and potentially delaying LINKs recovery.
From a technical perspective, LINKs price action revolves around the critical $10.79 level. Currently trading at $10.57, Chainlink is attempting to flip this resistance into support.
A successful breach of this local support could potentially catalyze a breakout from the broadening descending wedge pattern that has constrained LINKs price since late May.
Read more: https://thenewscrypto.com/chainlink-price-stuck-between-9-and-12-link-mirrors-broader-market-trends/
Text source: TheNewsCrypto – Blockchain & Cryptocurrency News M
