Chainlink (LINK) and Avalanche (AVAX) Break Downtrends: Top Altcoins to Watch

The first signs of a sizable bounce could be emerging from Bitcoin and the altcoins. With Bitcoin dominance looking weak, the altcoins could be primed to bounce harder. Chainlink (LINK) and Avalanche (AVAX) are among the first to break their downtrends. 

$LINK continues strong uptrend

Source: TradingView

$LINK hasn’t broken its downtrend because it isn’t in one. In fact, the latest uptrend is in full swing since 3 August, and a main uptrend has been in force since 22 June. In this time, the $LINK price climbed as much as 145%. On Wednesday morning this is continuing, with a more than 6% increase so far on the day.

Although the daily Stochastic RSI indicators are now falling, the shorter-term indicators are near the bottom. Momentum could go one way or the other as it stands.

$LINK close to high time frame breakout

Source: TradingView

In the weekly chart it can be observed that $LINK is very close to a high time frame breakout. If this does take place it would be extremely bullish. In fact, the above pattern could be called a cup and handle, which, if it played out, could take the $LINK price to $61.

While the Stochastic RSI indicators are very near the top, the RSI indicator still has plenty of room left and has not broken into overbought territory yet. At the bottom of the chart, the MACD is looking very bullish for a continued upside move.

$AVAX breaks recent downtrend

Source: TradingView

The $AVAX price has just broken above the recent downtrend. While it has formed a lower low than previous small downtrends, this would be a higher low for the main uptrend.

At the bottom of the chart, the Stochastic RSI is angled up sharply, potentially signalling the upside momentum that could take the $AVAX price back to the main descending trendline.

Can $AVAX break a damaging high time frame downtrend

Source: TradingView

The weekly chart for $AVAX looks the opposite of the one for $LINK. This is a crypto that has been beaten down severely, and unlike $LINK, it has failed to react with enough positivity to break a very damaging downtrend.

The price is still only just above the bull market horizontal support, and even though the price did break out of a long downtrend, it has failed to take advantage thus far.

All eyes will be drawn to the MACD in the middle of the chart. Here the downtrend can be seen in perspective. The hope that bulls have now is that this downtrend can be broken to the upside, and with such a long trend stretching back to the beginning of 2022, that the breakout might be explosive.

At the bottom of the chart, the RSI indicator is still a way from getting back to the descending trendline. Again, if this can be broken, things could get a lot more positive for $AVAX.

Disclaimer: This article is provided for informational purposes only. It is not offered or intended to be used as legal, tax, investment, financial, or other advice.

source : https://cryptodaily.co.uk