The post Bull Run in Chainlink Defies Pennant, Eyes Key Fibonacci Level appeared on BitcoinEthereumNews.com.

With a bearish pennant in the daily chart, the recovery rally in Chainlink teases a massive trend reversal. Will this reversal lead to a breakout run to $14? As Bitcoin reclaims the $61,000 level, the broader market sentiment jumps, with the Fear and Greed Index up by 7%. Amid the top performers in the recovering market, Chainlink projects a buy low, sell high possibility with a breakout at the cusp. Will this breakout run in Chainlink prices skyrocket for a 40% rally this week? Engulfing Candle in Chainlink hints at a Breakout Run In the daily chart, Chainlink witnesses a shift in underlying sentiment, showing signs of a bullish recovery. After a massive 56% correction, the Chainlink price fell from $21.71 to $9.48, below the $10 psychological mark.  However, the recent recovery run has reclaimed the $10 level, with Chainlink now trading at $10.508. In the short term, LINK’s price action forms a triangle pattern, which leads to a bearish pennant with the prevailing downtrend. Despite this, the ongoing recovery in Chainlink hints at a potential bullish breakout.  Over the past 24 hours, Chainlink has seen a 3.76% price increase, forming a bullish engulfing candle. This price action completes a morning star pattern within the triangle, challenging the overhead trendline. The MACD indicator on the daily chart shows a bullish crossover, while the RSI line is trending upward, approaching the 50% mark. The Early Signals in 4-hour Chart A closer look at the 4-hour chart reveals that LINK is poised to break above the overhead trendline with a rounding bottom reversal. Chainlink has found consistent support at the $10 level, forming four consecutive bullish candles. Additionally, LINK has surpassed the 20 and 50 EMAs on the 4-hour chart, hinting at a potential EMA crossover. According to the Fibonacci retracement levels…

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Filed under: News - @ August 20, 2024 7:24 am