The Chainlink (LINK) price has surged after creating a deviation below the long-term trading range. Technical indicators suggest that it will continue to rise towards the resistance level of the range.
Weekly Outlook
Since May 2022, the price of Chainlink (LINK) has been trading within the range of $5.5 to $9.5. The price broke below the range for the week of June 5-12 with a large bearish candle. This action indicated a continuation of the downward trend, and the price could potentially decline to the next support level at $1.5.
However, instead of a sharp decline, the LINK price formed a morning star pattern in the following two weeks (highlighted in blue ellipse) and reclaimed the support level of the range. This created a deviation below the range’s support, often leading to a strong upward movement.
Indeed, the LINK price has surged since then and formed a bullish engulfing candle last week, showing that bulls are in control of the market.
The weekly RSI indicator broke above the long-term descending resistance trendline and rose above the 50 level, suggesting that the long-term trend has turned to the upside.
Therefore, the LINK price is likely to continue rising towards the resistance level of the range at $9.5 and breakout afterwards.
Important MA Line
The LINK price has bounced three times from the 20-day EMA line (highlighted with green arrows) since breaking above it on June 23.
This indicates that the bulls consider the pullbacks to this EMA line as buying opportunities.
If history repeats, the LINK price may decline towards the 20-day EMA line ($7.12) before resuming its uptrend.
Conclusion
Technical prospects suggest that the LINK price will continue to rise in the near future. However, it might experience a dip towards the 20-day EMA line ($7.12) before resuming its upward movement.
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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