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Chainlink (LINK) Price Bounced From Previous Key Resistance, What Next?

The price of Chainlink (LINK) has rebounded from the previous significant resistance and formed a bullish pattern. It is expected to continue its uptrend in the near future.

Weekly Outlook

The Chainlink (LINK) price has broken above the long-term resistance zone at $18 and confirmed it as support last week (green arrow).

The bounce has created a bullish engulfing pattern. This is a bullish signal, indicating that the bulls are buying aggressively on minor dips.

The weekly RSI (Relative Strength Index) has confirmed the previous bearish divergence line as support and is trending upwards, supporting the potential for further gains.

Therefore, the LINK price could potentially rise to the next significant horizontal resistance at $28. This figure corresponds to a 35.61% increase from the current price.

LINK/USDT weekly chart. Source: TradingView

Short-Term Breakout

The LINK price has broken above the short-term resistance line and confirmed it as support yesterday (green arrow). This indicates that the short-term correction may have ended, and the LINK price might have initiated another upward movement.

The 4-hour RSI maintains above the 50 level since the price broke the short-term resistance line, signaling that the bulls are in control of the market.

Hence, the LINK price could rise to the nearest horizontal resistance at $22.6 in the next few days.

LINK/USDT 4-hourly chart. Source: TradingView

Conclusion

The most likely prospect suggests that the LINK price will continue to rise in the coming days. The immediate target is $22.6, with a higher target of $28.

This bullish outlook would be invalidated if the LINK price breaks and closes below the $18 zone on the weekly timeframe.

Disclaimer: Please note that this article is for informational purposes only and should not be taken as investment advice. As an investor, it is important to do your own research before making any decisions. We are not responsible for any investment decisions you make based on this information. Not Financial Advice.

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