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LINK/USD: when will this consolidation end?

  • LINKUSD has consolidated for more than six months
  • A bearish flag might form
  • Bulls and bears should wait for a breakout before acting

Chainlink provides data to smart contracts on the blockchain, and LINK/USD is in a long-term consolidation following an abrupt selloff. Both bulls and bears must have lost their patience, but such consolidations are interesting to trade because they usually appear ahead of another big market move.

Unlike other cryptocurrencies, LINK did not make new lower lows in the second half of 2022. Instead, buyers appeared on every attempt to trade below $6.

So that is a bullish accomplishment. On the flip side, every bounce was not strong enough to break the previous lower high. Therefore, bears appear to still be in control.

2023 brought a much-needed rally to the cryptocurrency market. Bitcoin, in particular, surged, and its bullish price action translated into bullish movements on other coins too.

Indeed, LINK/USD rallied from $6 to $8, only to meet new sellers there. In other words, the price action evolves inside a horizontal channel, and until a breakout, the chances are that it will go nowhere, only frustrating both bulls and bears.

LINKUSD chart by TradingView

Does the horizontal channel suggest anything?

Whenever a horizontal consolidation appears on a chart, the technical trader should look on the left side for trending conditions. In this case, a bearish trend is present, meaning that the horizontal consolidation might be part of a bearish flag pattern.

That is one scenario.

Another is that the market is simply carving a bottom. But for that to be true, bulls should wait for the price to break above $9.5, and ideally above $10, before going long.

The measured move of a horizontal channel is the channel’s width. So, just look for a breakout in either direction and target the measured move.

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TRX/USD bullish setup as it tries to overcome resistance

  • TRXUSD tries to overcome resistance seen at $0.07
  • A double bottom pattern formed at $0.05
  • An inverse head and shoulders pattern supports the bullish case

Another bullish setup appeared on the cryptocurrency market, this time involving TRON.TRX/USD struggles to overcome resistance seen at $0.07, and various bullish patterns formed in the meantime.

First, we should mention the bearish trend that lasted until the very last moment of 2022. Even in 2022, the market tried to make a new lower low, but somehow, bulls survived.

Second, even if the future price action confirms the double bottom and the inverse head and shoulders pattern, it would mean nothing if they are not accompanied by further strength above the previous higher low.

TRXUSD chart by TradingView

Tron has formed a double bottom pattern at $0.5

During the last weeks of 2022, Tron has formed a double bottom pattern. As it turned out, the $0.05 area was too difficult to break.

A double bottom is a reversal pattern – a bullish one. Hence, it forms at the end of bearish trends.

Its measured move coincides with the measured move of another bullish pattern – an inverse head and shoulders.

An inverse head and shoulders comes to support the bullish case

An inverse head and shoulders pattern takes more time to form. In this case, it took about half a year and is still incomplete. Bulls may want to see the price action closing above the neckline and then heading toward the measured move seen in orange on the chart above.

Whenever there are more than one patterns that point in the same direction, it is said that the market is in a confluence area. But the real bullish break, if any, would come only if TRX/USD is strong enough to break above $0.09, a pivotal area. On such a move, it means that the previous lower high is broken, and more strength should lie ahead.

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Ethereum Classic price: ETC looks primed for sharp 22% decline

  • Ethereum Classic price is down 2.5% in the past 24 hours.
  • ETC has failed to ride broader market sentiment, currently poised near $20.
  • A breakdown amid increased sellig could push ETC/USD down 22% to lows of $16.

Ethereum Classic (ETC) has not had a good March as has some of the top cryptocurrencies, including the top two of Bitcoin (BTC) and Ethereum (ETH).

As BTC flirted with resistance around $29,000 on Thursday, and ETH price consolidated near $1,800, Ethereum Classic price looked primed for fresh losses at $20. ETC is flat on the weekly time frame and negative this past 30 days.

ETC price: bulls need to hold $20 or risk double digit decline

The Ethereum Classic price outlook on the daily chart has the ETC/USD pair rejecting at the key supply zone just above $20. The macro downtrend remains in place as bears push bulls from the resistance line of the long term symmetrical triangle pattern.

Ethereum Classic price chart. Source: TradingView

The daily RSI is almost flat at the middle line though, suggesting greater indecisiveness all around. The bulls can take advantage of the lack of major upside action over the past few weeks to push higher. 

But the daily MACD gives buyers no joy and a breakdown in sentiment could threaten a 22% nosedive to the base line support around $16.

On the upside, a break above $24 would see bulls eye $30 and then possibly $39, with a major symmetrical triangle breakout likely to bring $75 into play over coming months.

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Is Bitcoin regaining its status as a safe-haven asset?

Bitcoin is on track for its third consecutive month of positive gains as investors continue to see it as a hedge against the recent bank failures.

Bitcoin has been breaking up with equities

What’s more interesting is that it’s no longer trading in lockstep with the S&P 500. In fact, data from Coin Metrics suggests the correlation between Bitcoin and equities is now the weakest since September 2021.

That makes sense, of course, considering its valuation is not coupled with earnings growth as in the case of equities. According to Alex Thorn of Galaxy Digital:

The correlation data shows that, at least recently, Bitcoin has indeed performed more like a safe-haven asset than a risk asset.

Bitcoin is currently up about 70% for the year.

Bitcoin is making a bond again with gold

On the flip side, the banking crisis has helped Bitcoin reestablished the correlation it once shared with gold. That also signals its now regaining the status as a “risk-off” asset. Thorn added:

Given the nature of current crisis – in which fractional reserve banking system’s core limitations are tested – Bitcoin’s fundamental characteristics genuinely distinguish and offer a safe port in a storm.

Remember that the world’s largest cryptocurrency had a difficult 2022 partly because of the aggressive rate hikes. Now that we’re near the end of that cycle, though, it’s likely that Bitcoin will have a clearer path ahead for upside.

Last week, Fed Chair Powell signalled only one more rate hikes this year.

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Hardware wallet maker Ledger raises $109 million in series C round

  • Ledger’s last round was at a €1.3 billion valuation.
  • The startup will use the funds to develop a new generation of hardware wallets, building on its latest offer Ledger Stax.
  • New investors in the series C extension round included VaynerFund and True Global Ventures.

Ledger, the leading cryptocurrency hardware wallet maker, has raised €100 million ($109 million) in its series C extension round.

As reported by Bloomberg on Thursday, the French startup was valued at €1.3 billion ($1.4 billion), which was the valuation during the previous financing round closed in June 2021.

“Today, Ledger announced our funding round. I’m grateful for our long-term investors’ continued support, and I welcome the new investors backing the current undeniable revolution of value and hardware. These funds will accelerate our mission to bring a new generation of secure consumer devices to hundreds of millions exploring critical digital assets and blockchain-enabled technology,” Ledger CEO & Chairman Pascal Gauthier said in a statement.

New backers for the round include VaynerFund, True Global Ventures, Cité Gestion SPV, and Digital Finance Group. Returning investors included Cathay Innovation, Draper Dragon, Morgan Creek, and Cap Horn.

Ledger eyeing next generation hardware wallet

The funding round comes amid growing demand from crypto holders for devices that offer next generation level storage and security for the digital asset industry.

According to Gauthier, the world is entering a new era of Internet of Value and billions of people will want access to devices that are built for the decentralised Internet of Value – in this case hardware wallets that go beyond the basic security features.

The recent launch of Ledger’s new hardware wallet Ledger Stax is the beginning of that journey into the future of “next-generation” hardware wallets. Stax’s designer is iPod and iPhone co-inventor & designer Tony Fadell.

Ledger was founded in 2014, and one of its most popular USB-type hardware wallets is the Ledger Nano S, Ledger Nano S Plus and Nano X. The company also offers Ledger Live on desktop and mobile.

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