Chainlink (LINK) Price Is Ready To Move Higher, Here’s A Potential Target
The price of Chainlink (LINK) has bounced off the support of the long-term range and formed a bullish signal. It may rise in the near future.
Long-term range
The price of Chainlink (LINK) 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 the price drops to support and sell when it reaches the resistance level of the range.
Indeed, traders have actively defended the support of the range over the past two weeks. This is clearly demonstrated by the weekly candle with a long lower wick (green arrow) and the inside bar candle from the previous week.
Although the weekly RSI indicator is moving around the 50 level, it has broken above the descending long-term resistance trendline. This indicates a slight advantage for the bulls.
If a recovery occurs, the nearest important resistance level to watch is $8.5.
Short-term outlook
The 4-hour RSI indicator of LINK has formed a bullish divergence within the oversold zone. This is a bullish signal that usually leads to a trend reversal to the upside.
The most recent occurrence of this was in the period from June 10th to June 20th (green ellipse), which was followed by a strong recovery.
If history repeats, the price of LINK could rise to the resistance level at $7, formed by the horizontal resistance area and the descending resistance trendline.
Conclusion
Technical indicators suggest that the price of LINK will recover in the near future. The nearest target is found at $7, and potentially higher towards $8.5.
The short-term bullish view might be invalidated if the price breaks below yesterday’s low at $5.83. In this case, the price could decline to the support level of the range at $5.5.
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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