The new month in the LINK market continued the consolidation started earlier near the all-time high. After a strong growth wave on 12 January, during which the price increased by 80% in 5 days, sellers became noticeably more active. From 17 January, it is extremely difficult for buyers to update local highs and continue the active growth phase:
As you can see from the chart, the volatility of the coin has significantly dropped and the price is trading quite close to the trend line, which buyers have been keeping since December 2020.
LINK Market Freezes to Shoot Again
Analyzing our previous article on the Link, our forecast worked out completely and the price actually increased 2 times. However, the main question is whether there is a prospect of continued growth in the LINK market.
Since 27 January, the LINK trading range has narrowed significantly. Along with the trading range decreasing, the daily trading volumes also decreased. If on 16-18 January, during the aggressive attack of buyers, the trading volumes averaged $6.5-8 billion a day, now this figure is 3 times less:
Critical Range for Growth Scenario is $22.6-23.6
A systematic volumes decrease, given that the price is in a narrow range, indicates that the market is preparing for a new strong momentum.
As the cryptocurrency market has positive dynamics and BTC has updated its historical high and aspires to $50,000 the probability of breaking the current LINK consolidation up is higher.
The critical point of this scenario is in the range of $22.6-23.6. While the LINK price is higher than this range, the initiative is in the hands of buyers.
Keeping this zone, buyers will be able to sharply test the next target of $37-40. Approximately in this range, there is a global trend line, which sellers skillfully protect from June 2019.
Looking at the weekly timeframe and long-term price consolidation in the range of $9-13, the prospect of continued growth is high.
The LINKBTC pair has a significant impact on LINK price slowdown, where the price is corrected for the 3rd week. It was at a time when LINKUSDT and LINKBTC price charts were growing at the same time – we saw strong impulses. Though, now BTC is once again starting to pull the blanket and needs liquidity.
Therefore, it remains to wait and control the critical range of $22.6-23.6.