Chainlink (LINK) Price Broke Out Strongly, Here’s The Next Potential Target
The price of Chainlink (LINK) has broken above a descending resistance line but shows short-term bearish signals. It is likely to undergo a correction or consolidation before continuing to rise.
Breaking the descending resistance line
The price of Chainlink (LINK) has been trading below a descending resistance line since reaching a local high of $8.4 on July 20. During this period, the price reached a low of $5.6 on August 17 and create a long wick below. This is a sign of buying pressure.
After consolidating within the range of $5.7 to $6.4 for 32 days, the price finally broke above the range on September 18 with a strong bullish candle. This indicates that the bulls have taken control of the short-term price action.
Indeed, the price broke above the descending resistance line the next day and confirmed it as support (green arrow), marking the beginning of a new uptrend.
The daily RSI (Relative Strength Index) has risen above the 50 level and is trending upwards, supporting further gains.
Therefore, the LINK price is likely to continue rising towards the nearest horizontal resistance at $8.5.
Short-term outlook
The 4-hour chart shows that the RSI has created a significant bearish divergence. This suggests a minor correction or consolidation may follow.
There are two potential targets for the end of this correction: $6.95 and $6.65.
Afterward, a strong uptrend is likely to occur.
Conclusion
The most likely scenario suggests that the LINK price will continue to rise to the nearest horizontal resistance at $8.5 in the near future. However, it may undergo a correction to $6.95 or $6.65 before doing so.
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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