Summary
- LINK/USD is in a long-term consolidation following an abrupt selloff.
- The price action evolves inside a horizontal channel, and until a breakout, the chances are that it will go nowhere.
- If bulls want to confirm that LINK is carving out a bottom, they should wait for the price to break above $9.5, and ideally above $10 before going long.
LINK/USD Consolidation
Chainlink provides data to smart contracts on the blockchain, and LINK/USD is in a long-term consolidation following an abrupt selloff. Both bulls and bears must have lost their patience, but such consolidations are interesting to trade because they usually appear ahead of another big market move. Unlike other cryptocurrencies, LINK did not make new lower lows in the second half of 2022. Instead, buyers appeared on every attempt to trade below $6. So that is a bullish accomplishment. On the flip side, every bounce was not strong enough to break the previous lower high. Therefore, bears appear to still be in control.
2023 Rally
2023 brought a much-needed rally to the cryptocurrency market. Bitcoin, in particular, surged, and its bullish price action translated into bullish movements on other coins too. Indeed