- Chainlink price sees bulls delivering a knock-out punch to bears on Wednesday with a 7% lethal kick.
- LINK trades back in a bullish triangle that this time could be successful.
- With tailwinds behind it, LINK could movetoward $9.52 and test the high from summer 2022.
Chainlink (LINK) price is trading once again in a bullish pattern that earlier broke down after a false break and very harsh rejection from bears. In early February LINK price action tanked lower as bulls were afraid of getting trapped in a trade heading nowhere. With more tailwinds appearing as support, crypto traders are in the front row trying to reenter the price action to be part of a rally that could swing as high as 30%.
On its path of recovery, Chainlink set to erase a half year of losses
Chainlink price performed a dropkick move on Wednesday that every MMA fighter would be jealous of. A brutal 7% kick to the upside resulted in a break above the 200-day Simple Moving Average (SMA). Additionally, the ascending side of a bullish triangle was broken to the upside and took out quite a substantial amount of bearish volume. Expect a further continuation toward $7.50 near the triangle’s base for a test to see if this rally holds more ground.
Once LINK can break and close above that $7.50 level, expect a massive wave of buying, with the buy-side demand exploding and price action ramping up quite quickly. This is a classic breakout trade that investors will gladly join. Expect a gradual rally higher toward $9.52 as the ultimate take-profit level in the coming weeks.
LINK/USD daily chart
As markets advance, that does not mean the tail risks are going away just as easily. Inflation could still pick up, and markets could be wrong-footed on the assumption that the Federal will cut rates later this year. A wave of layoffs or continued housing price declines could also trigger a sell-off in the market, so beware. Add geopolitics in there, and the tail risks are far from over. $6.60 remains a key pivot level for support.