Key Takeaways:
- Chainlink (LINK) formed a falling wedge on the daily chart
- However, the token could retrace 30% before possibly breaking out
- Chainlink's TVS surged over 700% year-over-year, but did not yet reach its November highs.
YEREVAN (CoinChapter.com) – LINK, the native token of the oracle network Chainlink, stalled near $17 in the European session on Mar. 29. The digital asset flashed conflicting technicals on the daily chart, suggesting either a push beyond a crucial resistance trendline or a 30% decline in the upcoming weeks.
The short-term bearish outlook is based on a technical setup dubbed the Falling Wedge. The latter consists of two converging trendlines that enclose the price action and prevent sharp breaks. Chainlink’s token repeatedly retested the setup’s support since late Jan., arriving at the resistance on Mar. 29 after a 20% monthly uptrend.
The Falling Wedge is a bullish reversal pattern, which means it forecasts a bullish break after LINK exhausts the formation.
Also read: Chainlink VRF v2 Goes Live on Mainnet. What’s new?
However, a closer look at the four-hour chart revealed that the token stalled around the resistance. Additionally, the lowering trading volumes could indicate insufficient weight behind the rally. Thus, LINK is not likely to conquer the said resistance yet.
Should the retest occur, the digital asset could retrace 30% and drop back to the Wedge’s support before accumulating enough buying pressure for a new rally beyond the formation.
Also read: Chainlink (LINK) at a rebound level — sustainable growth, or looming decline?
Meanwhile, according to mid-March statistics, Chainlink’s total value secured (TVS) crossed back above $58 billion.
Chainlink’s TVS waves a bullish flag
In detail, TVS is a metric used to measure the value of dApps and smart contracts that an oracle network secures. The metric peaked at $75 billion in November, according to the blockchain. After that, however, it slid south as the crypto market spiraled into a bearish phase.
The latest data shows a new uptrend, as the TVS reached $58 billion, advancing over 700% year-over-year. Notably, some traders took issue with the metric, citing the absence of sources on TVS other than the Chainlink blog.
Also read: BTC holds above $47.5K while Grayscale on the outs with SEC over Bitcoin spot ETF.
However, the stock analysis app InvestorObserver gave a bullish rating to LINK on MMar. 28
Over the last five days, Chainlink has earned a Very Bullish rating on the InvestorsObserver Sentiment Score. The Sentiment Score measures the performance of Chainlink over the past five days by volume and price movement. The Score provides a quick, short-term look at the crypto’s recent performance.
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