The positive message is this: as long as key support holds, Chainlink’s price will ultimately resolve higher.
SOURCE – Chainlink (LINK) Price Predictions
It has been a rough ride for may altcoins and many crypto investors.
The underlying reason is bi-furcation in crypto markets: some alts went up in 2024, but the majority not.
This crypto bull market is different, very different
The market dynamic called ‘bi-furcation’ was known to our readers.
In the first week of January 2024, we wrote The Crypto Bull Market 2024 Is An Hidden Bull Market:
However, the market won’t make it easy. Bi-furcation, which is the the fact that not all tokens move higher (in price) concurrently will make it very tough to spot the trends. The good thing with bi-furcation is that the entire world, at a bare minimum 99.9%, will only find out about the crypto bull market when most tokens trade at least 3x higher which is when it will be way too late to enter.
That said, LINK is one of those alts with great fundamentals but trendless price action.
LINK’s consolidation resolved higher
Chainlink holders probably had the same feeling, two years ago, when LINK traded within a range of $5.5 – 8.8.
It did so for nearly 18 months.
Undoubtedly, many LINK holders got frustrated, many sold. But there was enough interest to prevent the price from breaking down.
That’s exactly the dynamic we observe on the LINK chart – every dip was bought right at key support around $5.5.
This means that bulls were controlling the market with their long term view while bears were giving up because of their inability to control their emotions (most likely short sighted).
This long term consolidation eventually resolved, when the next bullish momentum window in markets started!
Chainlink’s bullish ABCD pattern
In order to understand what’s next, it is important to zoom out.
In a world where ‘everyone‘ is focused on the short term, it is more important than ever to be focused on long term trends and chart patterns.
What may be developing, going forward, on Chainlink’s long term timeframe, is a bullish ABCD pattern:
- AB: uptrend end of 2023
- BC: retracement of 2024
- CD: uptrend continuation, either late 2024 or in 2025.
In order for the bullish ABCD pattern to develop, key Fibonacci levels need to hold, especially the 38.2% (ultimately the 25%). This table was published in the Chainlink price drop prediction section:
Remember, bullish patterns develop because the most important support levels are respected in long term consolidations.
Our premium crypto alerts are designed to find multi-baggers, but also to identify periods of consolidation. This way, crypto investors have an understanding on when to be aggressive with their crypto positions vs. defensive.
