Chainlink (LINK) Price Could Increase Strongly After The Recent Breakout
The LINK price has bounced from long-term support and broken above short-term resistance. It is expected to rise further in the coming time.
Long-term Range
The LINK price has been trading within a range of $5.5 to $9.5 since May 2022. When the price is within a range, traders tend to buy when it drops to support and sell when it reaches the resistance level.
Indeed, traders have actively defended the support of this range in the past few weeks and are currently in the process of forming a large bullish candle.
The weekly RSI indicator has formed a higher low and reclaimed the 50 level, indicating that the bulls are coming back.
If the uptrend continues, the LINK price could rise to the horizontal resistance level at $8.3. Breaking this level would help LINK price rise to the resistance of the range at $9.5.
Short-term Breakout
The daily chart shows that the LINK price has broken above the consolidation range of $5.7 to $6.4 yesterday. Since this range has existed for 32 days, the post-breakout movement could be very strong.
The daily RSI indicator has formed a bullish structure and surged above the 50 level, indicating that the bulls are in control of the short-term price action.
Therefore, the LINK price is likely to break above the short-term descending resistance line and continue rising towards the $7.7 resistance in the coming days.
Conclusion
Technical indicators suggest that the LINK price will rise further in the near future. The nearest target is $7.7, with a higher target at $8.3.
The bullish outlook would be invalidated if the LINK price breaks below the recent higher low at $6.06.
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.
Read more:
- Radiant Capital (RDNT) Price May Increase Sharply In The Near Future, Here’s Why?
- Citigroup Ventures Into Digital Finance With Citi Token Services