Chainlink’s previous declining triangle pattern reignited the selling momentum as LINK plunged beneath its four-hour Exponential Moving Average ribbons. Consequently, the token dropped to $6.1 before recording an attractive growth within the previous week.
As bulls supported LINK’s spot beyond the Exponential Moving Average ribbons, Chainlink underwent a bullish flip. While the latest actions printed an optimist structure, LINK could extend its buying spree, taking advantage of immediate support from the Exponential Moving Average ribbons. While publishing this content, the altcoin traded at $7.711.
Chainlink 4Hr Timeframe
Chainlink’s reversals from $7.4 propelled a descending triangle pattern on this chart. Sellers triggered multiple lower peaks plus flatter lows around the $61.7 area. The resulting breakdown saw LINK losing more than 10% in a day. That had the alternative token diving towards multi-week lows on July 26.
The previous four days note a massive buying comeback as the altcoin rose past the 200 Exponential Moving Average, confirming a long-term edge. Furthermore, the morning star candle setup supported bulls to reinforce their strength.
The convincing bounce back from $6.3 comprised a 30% return on investment (ROI) that propelled the alternative token to month-long peaks on July 30.
Meanwhile, the token saw a bullish pennant pattern that supported buying activity. A closing beyond this structure might back buyers to test the $8.1 – $8.5 value area in the upcoming sessions. Bullish invalidations might continue securing support around the EMA ribbons at $7.3.
Reasoning
The RSI (Relative Strength Index) kept a spot beyond the midline, projecting a brief bullish edge. Moreover, the indicator’s latest troughs bullishly divergence with Chainlink prices.
Moreover, the on-balance volume printed gradual upticks from its lows. Similar to the RSI, a reversal from the OBV’s trend-line support might display a bullish divergence. Nevertheless, it was yet to dip beneath the zero-line to affirm a bearish edge.
Conclusion
Considering the bullish pennant pattern beyond the Exponential Moving Average ribbons and the EMA200, LINK might witness uptrends in the upcoming sessions. Bullish invalidations would likely trigger a rebound from the Exponential Moving Average ribbons.
Either way, possible targets would stay as discussed above. Lastly, enthusiasts should watch broad market sentiments for profitable deals.