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This Crypto Looks Like It's Breaking Out Of An Ascending Triangle

Chainlink (CRYPTO: LINK) is a crypto that is potentially breaking out of an ascending triangle pattern. The stock is now looking to find support where it once found resistance.

Chainlink considers itself as the industry standard oracle network, and the company is working to expand the capabilities of smart contracts.

“Chainlink’s decentralized oracle network provides reliable, tamper-proof inputs and outputs for complex smart contracts on any blockchain,” according to the company’s website. 4.1% at $41.68 at last check. 

Below is a technical analysis of the crypto’s chart.

linkdaily5-3-21.png

  • Chainlink looks to have broken out of what technical traders may call an ascending triangle pattern and is now trying to find support where it once found resistance.
  • The crypto is trading above both the 50-day moving average (green) as well as the 200-day moving average (blue). This indicates the crypto has had bullish sentiment in recent months.
  • The moving averages are areas on the chart that may hold a support level unless the price makes a sudden strong move downward through the averages.
  • Chainlink previously saw resistance near the $36 level, as this was where sellers have been able to push the price back lower.
  • Higher lows have built up to this resistance, creating the ascending triangle, where the price was condensed between the support and resistance levels.
  • A break above the resistance may send the crypto on its next leg up, and a break below support may cause the trend to change.

What’s Next?

Bullish technical traders would like to see the crypto hold above the previous area of resistance and consolidate for a time before it may see its next leg up and possible new all time highs.

Bearish technical traders would like to see the crypto fall to the support line and break below it. A break below the higher low trendline could hint that the crypto is seeing a potential change in trend.

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