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Chainlink’s high market capitalisation, combined with its recent success, has persuaded many investors that it is a stable crypto asset to keep in the long term. Many large-cap altcoins have recently broken through their previous ATHs and delivered double-digit increases, and a similar run for Chainlink is possible.
Over the last two weeks, market sentiment has been positive, with Connection approaching the $35 level.
Chainlink 12-hour chart
Since early February, Connection has been trading in a range of $24.3 to $34.7 on the charts. The half-way point inside this range is $29. LINK fluctuated between $31.8 and $26.2 for the majority of March. When BTC fell to $52,000, it dropped sharply to $24.3, but soon recovered to flip the $26.2 mark to help.
Since then, the crypto commodity has been steadily rising. It broke out sharply over the 50% mark ($29), implying a jump to the range highs. And it appears that such a move is in the works.
LINK has been shaping a bull pennant in orange for the last few days. Buyers’ intensity was shown by technical indicators. Despite the uncertainty on shorter timeframes, the leap above $26 has set up a gradual upward drive. The range lows have been swept, and a potential breakout above the range highs can be expected within the next week, if Bitcoin does not suffer a sharp shift that muddles investor sentiment.
Even as the pennant constrained the price movement of Connection, the RSI was sinking towards neutral 50. This meant that, while LINK was bullish overall, it could also fall to $31.4-$31.8.
The Accumulation/Distribution line was flat for much of March before beginning a gradual climb at the beginning of April. Around the same time, the Chaikin Money Balance surpassed +0.05, indicating that nett capital flow was entering the market as demand started to overshadow supply.
A breakout of the pennant could send LINK soaring past the range highs of $34 and the region of supply about $35, reaching as high as $38 before correcting.