Why Chainlink’s Latest Move Could Signal a Major Trend Reversal

Chainlink forms its first higher low since the bear market, signaling potential trend reversal. Key resistance at 0.00045000 remains crucial.

Chainlink has recently shown signs that it may be on the brink of a major trend reversal. After a prolonged downtrend, the cryptocurrency is establishing what could be a significant higher low.

This move, if sustained, could pave the way for a bullish trend. Traders are now closely monitoring these key developments as they may signal a shift in Chainlink’s price action.

Establishing the First Higher Low Since the Bear Market

Chainlink has been trapped in a downtrend since its peak in 2021, characterized by lower highs and lower lows. However, recent price action shows an important change in structure.

The cryptocurrency has formed a higher low, marking the first sign of a potential reversal since the bear market began.

This higher low is a crucial point for Chainlink, as it suggests the market may be finding support at higher price levels.

If this low holds, it could signal the end of the bear market and the beginning of a new upward trend.

A higher low is often seen as a positive indicator, signaling that buyers are beginning to gain control of the market.

If this higher low remains intact, traders will watch closely for further bullish signals. A move up from this point could lead to a new higher high, establishing the start of a more positive trend for Chainlink.

Breaking Key Resistance Levels to Confirm the Reversal

For Chainlink to confirm a trend reversal, it must break through a significant resistance level that has been capping its price action.

The resistance at 0.00045000 is a crucial level that traders are eyeing. A successful break above this price point would mark a major shift in the market structure.

Breaking this resistance would suggest that the bears are losing control, and buyers are ready to push prices higher.

If Chainlink can break through this key level, it may open the door for further upside movement. A breakout here would invalidate the bearish trend and could lead to higher price targets in the near future.

However, if Chainlink fails to break above this resistance, it could lead to a retest of the higher low.

A failure to breach this level would keep the bearish market structure intact and suggest that the price could still face further downward pressure.

Related Reading: Bitwise Chainlink ETF Approved for NYSE Arca Listing

Volume and Market Sentiment Remain Critical for Confirmation

While price action is important, volume also plays a crucial role in confirming a trend reversal.

Chainlink recent price action has been accompanied by relatively low volume, which suggests that the market is still uncertain. For the trend reversal to be confirmed, volume must increase as the price breaks resistance.

An increase in volume would signal that more buyers are entering the market and support the case for a sustained upward move.

Higher volume would add strength to the price movement, confirming that the trend reversal is not just temporary.

Conversely, if volume remains low, it could indicate a lack of confidence from traders, which might lead to price consolidation or even further declines.

The market sentiment surrounding Chainlink is also a key factor. If more traders and investors become convinced that a bullish trend is forming, the buying pressure could intensify, driving the price higher.

Therefore, tracking volume patterns will be critical in determining whether Chainlink move is the start of a genuine trend reversal or a temporary bounce.

The post Why Chainlink’s Latest Move Could Signal a Major Trend Reversal appeared first on Live Bitcoin News.