Chainlinks Inverse Head and Shoulders Pattern Triggers Hope About a Momentum Shift
Having gained fame as a blockchain abstraction layer that allows the connection of universal smart contracts, Chainlink (LINK) is eyeing a trend change.
According to market analyst Ted Pillows, LINKs inverse head and shoulder pattern. Utility tokens are gaining momentum, so Chainlink will most likely continue to show strength. If it manages to break the $16-$16.5 range, expect a 25%-30% pump by the 1st week of May.
The inverse head-and-shoulders pattern is a bullish reversal formation that illustrates a downtrend is nearing its end.
Therefore, it shows that buyers are gaining control at the expense of sellers.
Renowned crypto analyst Michael van de Poppe also shared similar sentiments that Chainlink was gearing up for a multi-month upwards trend if it smashed the resistance at $15.
Per CoinGecko data, Chainlink was hovering around $14.74 at the time of writing, representing a 15.7% increase in the past two weeks.
With LINK being a stones throw away from the psychological price of $15, a major resistance zone, time will tell whether this area will be breached in the short term for intensified bullish momentum.
Nevertheless, since a potential momentum shift is already making waves, Chainlink continues to witness positive on-chain metrics.
For instance, Chainlinks daily trading volume is up 17.73% to hit $346.97 million, illustrating heightened market activity and liquidity.
Meanwhile, Cardano founder Charles Hoskinson recently revealed ongoing efforts to integrate major blockchain systems, such as Chainlink, to expand the networks use case and reach.
Text source: ZyCrypto
