Chainlink’s recent rally points to the potential for a bullish pennant formation, which has renewed interest in the altcoin.
Despite the recent consolidation, market sentiment remains positive, creating an environment in which LINK could gain momentum towards its all-time high of $50.
“The start of the rally could trigger major rallies and there is talk that the altcoin season could come earlier than expected,” according to a source.
While exploring the potential bullish pennant formation in Chainlink’s consolidation process, details about market sentiment and LINK’s future price predictions are also shared.
The Future of Chainlink: Analysis of Market Movements
The latest analysis from COINOTAG shows that a bullish symmetrical triangle formation has formed on Chainlink’s daily chart. This formation had started to attract attention in 2021. After a long period of consolidation, LINK broke out of this formation and showed strong upward momentum. However, the slight decline following the bullish momentum suggests that this process may be the beginning of a significant uptrend.
If the LINK price supports this breakout and market conditions remain positive, a retest of the all-time high could be on the table. Analysts say that if the general cryptocurrency market follows suit, a target of $50 could be realistic in the coming months. This has the potential to attract wider interest and investment as the altcoin season begins.
Emerging indicators suggest that altcoin season could continue in parallel with LINK’s rise. The recent decline in BTC’s market dominance, its drop below critical support levels, and the sharp increases seen in the altcoin season index are among the factors reported by COINOTAG. This suggests that interest in Chainlink and other altcoins increased in December.
While the $50 LINK price target reflects a long-term perspective, current metrics offer a different short-term perspective. The increase in LINK’s exchange balance could be an indication of increasing selling pressure, warning of a possible price correction. Additionally, the NVT ratio, which indicates overvaluation, has also risen, supporting the possibility of a short-term pullback.
However, such corrections are common in the market and can precede further gains, especially when a bullish pennant formation is forming. Analysts note that as gains are realized among investors, holders are cutting their losses.
Current chart analysis shows that Chainlink is testing critical support levels, especially the $18.66 level is an important area. A successful breakout at this level could lead to a continuation of the rally, while failure could pull prices back to $14.9. The important thing is that the overall structure has the potential to transform into a bullish pennant formation, and this process should be monitored carefully.
