© Reuters ChainLink (LINK) Price explosion: What happened? Ethereum (ETH) Price Rally Lacks Backbone, Can Bitcoin (BTC) Break Above 50 EMA?
U.Today: Chainlink has raced ahead of the rest of the crypto market with an explosive 16% rally over the past two days. This rally can be attributed to a variety of factors, including increased activity in previously inactive wallets, indicating a resurgence of movement within the Chainlink ecosystem.
Analysis has revealed a peak consumed age of 5.38 billion, a metric that measures the multiplication of coins moved by the number of days they remained passive. This sudden mobilization of LINK tokens has injected volatility and liquidity into the market, driving the price increase.
LINK/USDT chart by TradingView From a technical point of view, Chainlink price has broken crucial resistance levels and is now trying to establish new support. The price has broken through the $15.29 mark, which previously acted as a major resistance barrier. This advance suggests strong bullish sentiment, with potential for further growth if momentum is maintained.
The next resistance lies at around $18.39, a level that, if broken, could reinforce confidence in Chainlink's uptrend. Conversely, if a pullback were to occur, the $14.29 level could serve as new support, providing a safety net for the price. A fall below this could see LINK test the $13.18 support zone, where buyers may step in to prop up the market.
There is no power to
Ethereum, the second-largest decentralized network by market cap, is experiencing a period of stagnation, and its anticipated price rally shows signs of faltering. Despite Ethereum's prominence in the blockchain space, the network is facing a significant challenge from competitors like , which has been capturing an increasing share of blockchain activity.
A closer look at Ethereum's price movement reveals a lack of momentum that could be attributed to declining on-chain traction and volume. Ethereum price is currently consolidating around the $2,300 mark, struggling to find the strength for a decisive move. The key resistance level to watch is at $2,337, where the token has faced repeated rejections. A break above this point could potentially lead to a test of the $2,450 zone, offering a glimmer of hope for bullish momentum.
However, support levels paint a cautious picture, with $2,193 as the immediate floor. A break below this could see prices fall towards the $2,042 level, which could further weaken market sentiment. The lack of volume accompanying recent price movements suggests a tentative market, with investors possibly waiting for a stronger signal of a trend change before committing to more substantial positions.
aim for progress
Bitcoin has recently made a bold move, cutting the 50-day exponential moving average (EMA), a key technical resistance level. This advance is a sign of strength for the leading cryptocurrency, indicating a possible reversal of its recent price consolidation.
Historically, the 50 EMA has acted as a litmus test for Bitcoin's short-term trend direction. A sustained move above this line could validate the bullish sentiment among investors, as the cryptocurrency attempts to establish a new foothold for further gains. Currently, Bitcoin price is hovering around the $42,000 mark, attempting to solidify its position above the 50 EMA.
In terms of price analysis, the successful breakout of the 50 EMA has set the stage for Bitcoin to test the next resistance level near $43,500. This level is critical as a break above could pave the way for a move towards the $45,000 resistance zone. However, it is essential to note that Bitcoin needs to maintain its current momentum to avoid dips below the 50 EMA, which could dampen the optimistic outlook.
This article was originally published on U.Today.
