The crypto markets have been on a rollercoaster ride ever since the bearish trend was reversed in the first few days of 2023. With this, many tokens soared to significant numbers, while some managed to surpass their previous ATH. This was followed by a descending consolidation, which was again challenged by the bull during the previous month. With the market conditions being volatile, some of the altcoins continue to trade within a narrow range, with fewer chances of triggering a bullish breakout.
Chainlink (LINK)
Chainlink has been the leader of the consolidation as the bulls have been constantly failing to soar above the pivotal resistance for a long time. After breaking out from the previous accumulation of over 20 months, it was believed that the LINK price may now maintain a steep ascending trend and eventually barge into new highs. However, the current trade setup indicates a preference for setting up a fresh accumulation phase.
The huge daily bullish candle appears to lift the LINK price towards the upper resistance of the channel. Although the RSI is bullish, it may soon hit overbought levels, which may further trigger a bearish divergence. This could compel the price to face a rejection after testing the upper resistance of the channel above $17. However, the volume has increased to some extent and hence, the probability of a bullish breakout also appears.
Polygon (MATIC)
Polygon also appears to have lost its glory, as the token has begun with a parallel consolidation after undergoing a descending consolidation. The bulls are facing extreme difficulty lifting the levels above $0.95, which has resulted in rejection. Now that the token is trying to halt the bearish trend, can we expect a bullish breakout?
It is worth noting that the volume has dropped to a large extent, which has hindered the progress of the rally. However, the trend is not expected to flip at once, as the RSI also carries the possibility of a bearish pullback. Therefore, even though the MATIC price triggers a bullish upswing, it may be short-lived which may trap the bulls. Unless and until a huge volume does not make its way out, the Polygon (MATIC) price may remain under the same resistance and support levels between $0.948 and $0.723 respectively.
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