Chainlink (LINK) and Avalanche (AVAX) Poised for 15% Rally

On Feb 20, 2024

After surging to new local highs earlier, most major cryptocurrencies have entered short-term consolidation with a mild bearish bias currently.

Still, certain altcoins like Chainlink (LINK) and Avalanche (AVAX) are flashing early signals of basing to resume their upside moves soon. The question is whether buyers can overwhelm selling pressure and spark the next leg in their recoveries.

Chainlink (LINK)

LINK is observing significant consolidation above newly established support confluent with the previous resistance zone – indicating growing strength amongst buyers as they defend recent gains.

The Directional Movement Index (DMI) suggests this trading range between $19 and $23 persists over the coming weeks. As the +DI and -DI lines undergo a bearish crossover, volatility could dry up in the interim.

Also read: Ethereum Surges Towards $3,000: Can ETH Hit $5,000 Next?

The bulls seem poised to eventually break above $25 resistance after basing further. While concerningly decreasing volumes could delay such a breakout temporarily, the odds of a bearish pullback remain unlikely at this stage.

Avalanche (AVAX)

Meanwhile, AVAX has also held up resiliently above its recent swing low, with dip buyers emerging around the support zone so far, mitigating the extensive downside. Although still below its latest peak, Avalanche is developing a base for the next move higher.

The Relative Strength Index (RSI) shows rebound momentum slowly materializing around average levels for now. However, the conflicting MACD continues to signal lingering bearish pressure that could spark one more bid for support.

Also read: Ripple: XRP Eyes A Potential 7,000% Breakout

Eventually, buying momentum should return to match selling activity, leading AVAX into a consolidation equilibrium for the time being. But whether significant directional volatility resumes sooner rather than later remains debatable.

In summary, both Chainlink and Avalanche are exhibiting early signals for a renewed upside bid, even amidst recent market indecision. While uncertainty persists on the exact timeline, neither looks prone to material downside at this point as bulls defend critical levels. Sustaining current supports paves the way to retest recent highs when conditions improve.