The cryptocurrency market has shown significant recovery over the past 72 hours, with Bitcoin reaching $99,000. This has reduced Bitcoin's dominance, thereby supporting other altcoins like Chainlink (LINK), which is approaching critical resistance levels.
Bitcoin's Recovery and Its Impact
Bitcoin (BTC) has surged to $99,000 following its recent drop to $89,000. This has provided room for altcoin growth due to Bitcoin's dominance drop from 58.60% to 57.61%.
Formation of Falling Wedge in Chainlink
From November to mid-December 2024, Chainlink (LINK) displayed a bullish rally, reaching nearly $31. Later, the price consolidated within a classic bullish setup — the falling wedge pattern. As a result, LINK climbed to its current price of $21.94 after rebounding from the wedge support at $17.86.
Prospects for Chainlink
The potential breakout of the falling wedge, along with bullish indicators, suggests the possibility of a rally for Chainlink. If LINK breaches the resistance, its next targets will be $23.77 and $30.88, signifying a potential gain of 41% from the current price.
Bitcoin's recovery and reduced dominance create favorable conditions for altcoin growth, such as Chainlink, hinting at substantial prospects for further market strength.
