Chainlink Price Analysis: Possible Breakout for LINK/BTC

Will the price continue to decrease or is there a reversal in store? Keep reading below in order to find out.

Chainlink Price: Trends and Highlights for July 12

• LINK/BTC is trading inside a descending wedge.
• Short-term moving averages are bullish.
• There is support near 23,000 satoshis.
• There is resistance near 28,000 and 31,000 satoshis.

LINK Price in a Descending Wedge

Since reaching the aforementioned high on July 2, the LINK price has been trading inside the descending wedge outlined below. The movement inside the wedge has been gradual, devoid of any significant fluctuations. At the time of writing, the LINK price was trading close to the resistance line of the wedge. It has previously made four attempts at a breakout. Furthermore, it is approaching the end of the wedge. A look at the 10- and 20-hour moving averages (MA) suggests that the price is likely to break out in the near future. The LINK price is trading above both MAs. Also, they have begun tilting upward, possibly setting themselves up for a bullish cross. If that happens, it would act as a confirmation that an uptrend is likely to begin.

Ascending Support

A longer-term view shows that the Chainlink price has been following an ascending support line since May 13. Furthermore, it gives us a support area near 23,000 satoshis. At the time of writing, the LINK price was trading slightly above this support area — which is created by the highs of June 12. If the price continues to decrease at the rate predicted by the wedge, it should reach the support line sometime next week. However, in order to do so, it would have to break down from the support area at 23,000 satoshis. A look at the moving averages suggests that there is indecision in the market. First, the LINK price is trading below both the 10- and 20-day MAs, facing very close resistance from the latter. However, while the MAs are falling, they have not yet made a bearish cross. Furthermore, the recent decrease was not preceded by bearish divergence. Therefore, it is possible that the price will resume its upward movement soon. Taking into account the short-term analysis, it is likely that it will do so.

Resistance Areas

If the Chainlink price breaks out from the wedge, two resistance areas are outlined below. The closest resistance area is found near 28,500 satoshis, followed by resistance near 31,500. According to our analysis, it is likely that the LINK price will reach at least one of these areas.

Summary

The LINK price has been increasing since May. It is currently trading inside a descending wedge. According to our analysis, it is likely that the price will soon break out from the wedge and reach one of the resistance areas outlined above. Do you think the LINK price will break out from the wedge? Let us know in the comments below.

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Disclaimer: This article is not trading advice and should not be construed as such. Always consult a trained financial professional before investing in cryptocurrencies, as the market is particularly volatile.  Images are courtesy of Shutterstock, TradingView.