Chainlink’s low long-term risk: Is it time to buy as LINK consolidates?
The post Chainlink’s low long-term risk: Is it time to buy as LINK consolidates? appeared on BitcoinEthereumNews.com.
The long-term risk for Chainlink was low as at press time. LINK consolidates in a falling wedge as Smart Money remain bullish. Chainlink [LINK] continued to be one of the top cryptos with its recent UDPI Long reading indicating that LINK was in a period of low risk. Historically, downturns in the UDPI, often preceded either price stability or increase. In fact, dips in risk around early 2020 and late 2022 corresponded with rallies. This suggested that lower perceived risk led to enhanced buying activity. These troughs in risk often appear just before substantial price gains, supporting accumulating LINK when the UDPI Long reading is still low. Source: Polarity DIGITAL Despite occasional skepticism towards Chainlink, these patterns suggest that it is poised for growth during favorable market cycles. The historical trend showed that when risk levels subside, LINK’s price tends to rise, aligning with the perspective that alt season could benefit Chainlink. These low-risk periods are often viewed as optimal times to invest, anticipating potential rallies. LINK consolidated in a falling wedge The chart of LINK illustrated a clear falling wedge pattern on the hourly time frame, characterized by converging trendlines enclosing price action. This technical formation typically suggested a bullish reversal potential once the price breaks out above the upper trendline. Throughout the observed period, LINK’s price movements have been tightly compressed within this pattern, indicating decreasing volatility and potential accumulation phases. Source: Trading View LINK’s price tested the resistance line multiple times, each attempt narrowing the price range and heightening anticipation for a breakout. Given the pattern and low-risk period, this presents an opportunity for traders to go long or increase holdings in LINK. The chart suggested that a decisive breakout above the upper trendline, accompanied by increased volume, could trigger a new uptrend. Volume and sentiment Chainlink’s …
Filed under: News - @ November 16, 2024 3:22 am