Altcoins Trading Under the Extreme Consolidation Zone: Will They Trigger a Breakout This Month?

Altcoins Trading Under the Extreme Consolidation Zone: Will They Trigger a Breakout This Month?

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Crypto markets have been on a roller coaster since the bearish trend reversed in the early days of 2023. With this, many tokens skyrocketed to significant figures, while some managed to surpass their previous ATH. This was followed by a downward consolidation, which was again challenged by the bull market during the previous month. Since market conditions are volatile, some of the altcoins continue to trade within a tight range, with less chance of triggering a bullish breakout.

Chainlink has been the consolidation leader as the bulls have consistently failed to overcome fundamental resistance for a long time. After breaking through the previous accumulation of more than 20 months, it was believed that the price LINK It can now maintain a strong uptrend and eventually reach new highs. However, the current trading setup indicates a preference for establishing a new accumulation phase.

The huge bullish daily candle seems to lift LINK price towards the upper resistance of the channel. Although the RSI is bullish, it could soon reach overbought levels, which could further trigger a bearish divergence. This could force the price to face rejection after testing the upper resistance of the channel above $17. However, the volume has increased to a certain extent and therefore the probability of a bullish breakout also appears.

Polygon (MATIC)

Polygon also seems to have lost its glory as the token started a parallel consolidation after undergoing a downward consolidation. The bulls are facing extreme difficulties in raising levels above $0.95, which has led to rejection. Now that the token is trying to stop the downtrend, can we expect a bullish breakout?

It should be noted that the volume has fallen greatly, which has made it difficult for the rally to advance. However, the trend is not expected to change immediately as the RSI also carries the possibility of a bearish retracement. Therefore, although the MATIC price triggers a bullish rally, it can be short-lived and trap the bulls. Unless and until heavy volume comes out, Polygon (MATIC) price may remain below the same resistance and support levels between $0.948 and $0.723 respectively.

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