chainlink-(link)-price-explosion:-what-happened?-ethereum-(eth)-price-rally-lacks-backbone,-can-bitcoin-(btc)-break-through-50-ema? - Financial Markets Worldwide

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Published Feb 03, 2024 09:27PM ET Updated Feb 03, 2024 11:30PM ET

ChainLink (LINK) Price Explosion: What Happened? Ethereum (ETH) Price Rally Lacks Backbone, Can Bitcoin (BTC) Break Through 50 EMA? ChainLink (LINK) Price Explosion: What Happened? Ethereum (ETH) Price Rally Lacks Backbone, Can Bitcoin (BTC) Break Through 50 EMA?

U.Today – Chainlink has surged ahead of the rest of the crypto market with an explosive 16% rally in the last two days. This rally can be attributed to a variety of factors, not least of which is the activity spike in previously dormant wallets, signaling a resurgence of movement within the Chainlink ecosystem.

The analytics have revealed an Age Consumed spike of 5.38 billion, a metric that measures the multiplication of coins moved by the number of days they had remained passive. This sudden mobilization of LINK tokens has injected volatility and liquidity onto the market, fueling the price ascent.

LINK/USDT Chart by TradingViewFrom a technical standpoint, Chainlink’s price has breached crucial resistance levels, now attempting to establish new support. The price has soared past the $15.29 mark, which previously acted as a significant resistance barrier. This breakthrough suggests robust bullish sentiment, with the potential for further growth if the momentum is sustained.

The next resistance lies at approximately $18.39, a level that, if conquered, could bolster confidence in Chainlink’s uptrend. Conversely, should there be a retracement, the $14.29 level may serve as a new support, providing a safety net for the price. A dip below this could see LINK testing the $13.18 support zone, where buyers may step in to prop up the market.

No power for

Ethereum, the second-largest decentralized network by market capitalization, is experiencing a period of stagnation, with its anticipated price rally showing signs of faltering. Despite Ethereum’s prominence in the blockchain space, the network is seeing a significant challenge from competitors like , which has been capturing a growing share of blockchain activity.

A closer look at Ethereum’s price movement reveals a lack of momentum that could be attributed to the decrease in on-chain traction and volume. Ethereum’s 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 breakthrough above this point could potentially lead to a test of the $2,450 zone, offering a glimmer of hope for bullish momentum.

However, the support levels paint a cautious picture, with $2,193 serving as the immediate floor. A breach below this could see prices slide toward the $2,042 level, which could further dampen market sentiment. The lack of volume accompanying recent price movements suggests a tentative market, with investors possibly waiting for a stronger sign of a trend reversal before committing to more substantial positions.

aims for breakthrough

Bitcoin has recently made a bold move, slicing through the 50-day Exponential Moving Average (EMA), a key technical resistance level. This breakthrough is a sign of strength from the leading cryptocurrency, indicating a potential reversal from its recent price consolidation.

The 50 EMA has historically acted as a litmus test for Bitcoin’s short-term trend direction. A sustained move above this line could validate bullish sentiment among investors, as the cryptocurrency tries to establish a new foothold for further gains. Currently, Bitcoin’s price is hovering around the $42,000 mark, attempting to solidify its position above the 50 EMA.

In terms of price analysis, the successful breach 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 toward the $45,000 resistance zone. However, it is essential to note that Bitcoin needs to maintain its current momentum to prevent fallbacks below the 50 EMA, which could dampen the optimistic outlook.

This article was originally published on U.Today


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