The cryptocurrency market has been on a roller coaster ride since the bearish trend was reversed in the first few days of 2023. This has caused many tokens to soar to significant numbers, with some even surpassing their previous ATHs. This was followed by a descending consolidation, which was again challenged by the bulls last month. Due to volatile market conditions, some altcoins continue to trade within narrow ranges and are unlikely to trigger a bullish breakout.
Chainlink (LINK)
Chainlink was the leader in the consolidation as the bulls failed to rise above pivotal resistance for long. After breaking the previous accumulation of over 20 months, it was believed that LINK price could now maintain its steep upward trend and eventually enter new highs. However, the current trading setup indicates that it favors setting up a new accumulation phase.
A huge daily bullish candle appears to be pushing LINK price towards the upper resistance of the channel. RSI is bullish, but could soon reach overbought levels, triggering a further bearish divergence. This could result in a rejection of the price after testing the channel’s resistance above $17. However, since the trading volume has increased to some extent, there is a possibility of a strong breakout.
Polygon (MATIC)
Polygon also appears to have lost its glory as the token undergoes descending integration and then begins parallel integration. The bulls are having extreme difficulty rising above $0.95 and have been rejected for this reason. Now that the token is trying to halt its bearish trend, can we expect a bullish breakout?
It is noteworthy that the progress of the rally is being hampered by a significant decrease in trading volume. However, the RSI also implies a possibility of a bearish decline, so the trend is not expected to reverse immediately. So even if MATIC price triggers a bullish rally, it could lock in the bullishness in the short term. Unless there is a massive exit, Polygon (MATIC) price may remain below the same resistance and support levels between $0.948 and $0.723 respectively.