Black Friday is Now! Don’t miss out on up to 60% OFF InvestingProCLAIM SALE

Chainlink (LINK) on Reversal Point, Aims for 20% Rally

Published 2023-12-20, 10:13 p/m
© Reuters.  Chainlink (LINK) on Reversal Point, Aims for 20% Rally

U.Today - has finally reached a potential turning point. Recent price action has seen LINK touch the 50-day Exponential Moving Average, a critical technical level that often signals a possible trend reversal. Analysts and investors are closely watching as LINK teeters on the cusp of a 20% rally in alignment with broader market movements.

The touching of the 50 EMA is particularly significant for LINK, as it has historically acted as a dynamic support or resistance level for many assets, including Chainlink. A bounce from this level could see LINK make a solid upward move, especially given its recent pattern of mirroring the general market's performance. This pattern suggests that if the crypto market continues its upward trajectory, LINK is well-placed to capitalize on the momentum.

However, fate is not solely tied to market dynamics. As a price oracle platform, its performance is intrinsically linked to the vibrancy of the DeFi space. Oracles are vital to DeFi, providing the necessary data to facilitate smart contracts accurately and securely. Without substantial growth and innovation within DeFi, LINK’s potential for a significant rally may be constrained.

Shiba Inu stays relevant

token has been the center of attention for many traders at the beginning of the cryptocurrency market bull run in 2023; however, its recent chart placement suggests a pivotal moment is upon us, as SHIB consolidates on the edge of the significant psychological threshold of $0.00001. This price point has transformed into a veritable battleground where the bulls and bears clash.

A closer examination of SHIB's daily chart reveals that it is currently hugging the line, hinting at an indecisive market. The token has seen some upward momentum in recent times, moving in tandem with the market's recovery, yet the $0.00001 mark remains a resistance that SHIB has struggled to consistently overcome and maintain as support.

This level's significance is twofold; it not only serves as a technical resistance but also a sentimental one. Crossing this threshold decisively would be a strong bullish signal, potentially igniting a rally for SHIB.

However, the journey above this mark is fraught with challenges. The token's volatility is high, and sustaining gains has been a struggle. For SHIB to establish a foothold above $0.00001, it will need to do more than just ride the waves of market sentiment; it will require a fundamental catalyst that can drive sustained interest and investment.

MATIC delivers bullish signal

Polygon has recently flashed a bullish signal on its trading chart, catching the eyes of crypto enthusiasts and technical analysts. A cross, where the shorter-term 100-day Exponential Moving Average crosses above the longer-term 200-day EMA, has materialized. This event is often seen as a bullish indicator, suggesting that a sustained uptrend may be on the horizon.

The crossing of these EMAs can imply that the average price of has been rising over the recent period and may continue to do so. This could catalyze further buying behavior as traders often interpret this cross as a shift in momentum from bearish to bullish. The golden cross has historically been a precursor to significant price rallies on various assets, including cryptocurrencies.

However, this bullish signal comes on the heels of a recent price drop for MATIC, where the asset saw a sharp decline from its recent highs. This drop has led some investors to question the immediate future of the asset.

The recent fall in price may lead to a test of the newfound support levels. If MATIC holds strong and rebounds from these levels, the golden cross could serve as confirmation of a bullish trend. Conversely, if the price fails to sustain and breaks through support, the cross may be seen as a lagging indicator, and caution could be warranted.

This article was originally published on U.Today

Latest comments

Risk Disclosure: Trading in financial instruments and/or cryptocurrencies involves high risks including the risk of losing some, or all, of your investment amount, and may not be suitable for all investors. Prices of cryptocurrencies are extremely volatile and may be affected by external factors such as financial, regulatory or political events. Trading on margin increases the financial risks.
Before deciding to trade in financial instrument or cryptocurrencies you should be fully informed of the risks and costs associated with trading the financial markets, carefully consider your investment objectives, level of experience, and risk appetite, and seek professional advice where needed.
Fusion Media would like to remind you that the data contained in this website is not necessarily real-time nor accurate. The data and prices on the website are not necessarily provided by any market or exchange, but may be provided by market makers, and so prices may not be accurate and may differ from the actual price at any given market, meaning prices are indicative and not appropriate for trading purposes. Fusion Media and any provider of the data contained in this website will not accept liability for any loss or damage as a result of your trading, or your reliance on the information contained within this website.
It is prohibited to use, store, reproduce, display, modify, transmit or distribute the data contained in this website without the explicit prior written permission of Fusion Media and/or the data provider. All intellectual property rights are reserved by the providers and/or the exchange providing the data contained in this website.
Fusion Media may be compensated by the advertisers that appear on the website, based on your interaction with the advertisements or advertisers.
© 2007-2024 - Fusion Media Limited. All Rights Reserved.