LINK Bullish Pattern Might Lead to a Breakout

Highlights

• LINK is following a parabolic ascending support line.
• The price has possibly created an inverse head and shoulders pattern.
• There is resistance at 31,500 & 36,000 satoshis.
• There is support at 28,000 satoshis.

The LINK price has been decreasing since November 14, 2019. However, it has recently begun to generate some bullish momentum. Cryptocurrency trader @CryptoNewton made a tweet about the LINK price chart, outlining an inverse head and shoulders (H&S) pattern, from which a breakout is expected.

$LINK marines, how about this? pic.twitter.com/wBiRmjLxD4

— 👑 Shelby 👑 (@CryptoNewton) January 29, 2020

Will the LINK price break out? If so, how long will it continue to increase? Keep reading below if you are interested in finding out.

Parabolic Support

The LINK price has been following a parabolic ascending support line since December 2017. The ascending support line has been in place for 798 days, and the price has increased by a massive 2576% while following it. The price has made several attempts at moving above the 36,000 satoshi resistance area, but it has failed to reach a weekly close above it. The final attempt was made in November 2019, and the price has been decreasing since.

LINK Current Movement

The LINK price broke out above a descending resistance line on January 8 and validated it afterward on January 14. The price has been increasing since. Also, LINK is trading above the 50- and 200-day moving averages (MA), which have previously made a bullish cross. We believe the current level is very suitable for a reversal since it presents a minor support area and coincides with the 50-day MA. If the price increases, it must first break out above the 31,500 satoshi resistance area before heading towards 36,000 satoshis.

Inverse Head And Shoulders

As outlined in the tweet, the LINK price has created what resembles an inverse H&S pattern, currently being in the process of creating the right shoulder. The neckline of the pattern fits perfectly with the 31,500 minor resistance area, and a breakout from the pattern would likely take the price to the 36,000 satoshis, a movement that we believe is likely. Based on the low of the left shoulder, we could see the price decreasing towards 27,000 satoshis before initiating the outlined upward move. To conclude, the LINK price has reached a suitable reversal area and created an inverse head and shoulders, which is considered a bullish reversal pattern. We believe that the price will eventually break out and head towards 36,000 satoshis.