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If Chainlink (LINK) Maintains This Level, Potential 50% Price Surge Could Follow

The price of Chainlink (LINK) is currently testing the previously significant resistance level. How the price reacts to this level may determine the future trend.

Key Level

The Chainlink (LINK) price broke above the long-term resistance zone at $18 in the week of February 5th to 11th, 2024, signaling the continuation of the uptrend.

After reaching a new yearly high at $20.9, the LINK price retraced and tested the $18 zone last week (green arrow).

Although the price reacted to this zone, the last week’s candle was a bearish candle with a body longer than the wick. This indicates weakness, suggesting that the bears are attempting a comeback.

Therefore, it’s crucial to observe LINK’s reaction to the $18 zone this week to determine the next trend.

The weekly RSI (Relative Strength Index) has bounced up from the previous decreasing divergence (green arrow) and is sloping upward, indicating the bulls have an advantage.

If the price continues to bounce from the $18 zone this week, it could potentially increase by 46.64% to the next resistance zone at $28.

However, a breakdown could cause the price to rapidly drop to the next support zone at $12.7.

LINK/USDT weekly chart . Source: TradingView

Daily Outlook

The daily chart shows that the LINK price has broken above an ascending parallel channel and confirmed it as support on February 23, 2024. This is a common move after a breakout and often leads to the continuation of the uptrend.

The daily RSI has generated a significant bullish divergence, bouncing from the 50 level and sloping upward, supporting the potential for further increases.

Therefore, the daily chart supports the idea that the LINK price will bounce from the previous resistance zone at $18 on the weekly timeframe.

LINK/USDT daily chart . Source: TradingView

Conclusion

The most likely prospect suggests that the LINK price will continue to rise in the near future. The potential target for this rally is $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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