LINK/USD: When Will the Consolidation End?

• Chainlink’s LINK/USD is in a long-term consolidation following an abrupt selloff.
• Bulls and Bears must wait for a breakout before acting, as the market is either forming a bearish flag pattern or carving a bottom.
• The measured move of the horizontal channel is the channel’s width so traders should look for a breakout in either direction to determine their target.

LINK/USD: Consolidation Continues

Chainlink provides data to smart contracts on the blockchain, and LINK/USD is currently in a long-term consolidation after an abrupt selloff. This means that both bulls and bears must wait for a breakout before acting.

Bearish Flag Pattern Potential

When looking at this horizontal consolidation, technical traders should check for trending conditions on the left side of the chart. In this case, there is a bearish trend present which suggests that this consolidation may be part of a bearish flag pattern.

Carving A Bottom?

Another potential scenario is that the market is simply carving out a bottom. To confirm this theory, bulls should wait for the price to break above $9.5 or ideally above $10 before going long.

Measured Move Of Horizontal Channel

The measured move of this horizontal channel is determined by its width, so traders need to look out for any breakouts in either direction to calculate their targets accordingly.

2023 Bull Run Impact On LINK/USD

2023 brought with it an overall bullish sentiment in the cryptocurrency market due to Bitcoin’s surge which also translated into positive movements on other coins such as LINK/USD which rallied from $6 to $8 only to meet new sellers there causing it remain inside its current horizontal channel.