Will Chainlink Reach New Yearly High?
The Chainlink (LINK) price has been following a descending resistance trendline since April, which has had a significant impact on its volatility. On the daily timeframe, LINK has experienced both drops and increases in price, with drops of 46% and 33% and increases of 77% and 46%. Throughout this period, LINK has consistently fallen under the descending resistance trendline, resulting in two rejections on July 20 and September 30.
After reaching a low of $7.20, LINK formed a bullish engulfing candlestick with a long lower wick, indicating that buyers quickly stepped in to end the previous decrease. Meanwhile, Chainlink co-founder Sergey Nazarov highlighted that banks face challenges in adopting blockchain due to their existing investment in SWIFT infrastructure.
Chainlink Price Prediction: Will Volatility Return in October?
The daily RSI can be used to determine the future trend of Chainlink’s price. When the RSI reading is above 50 and trending upward, bulls have an advantage. Conversely, if the reading is below 50, bears have the upper hand. In the case of Chainlink, the 46% and 33% price decreases occurred after the RSI entered overbought territory. On September 30, the RSI reached overbought territory again, coinciding with the rejection of the resistance trendline.
Currently, a breakdown below 50 in the RSI could lead to a 23% drop in the LINK price to $6.35. On the other hand, if the RSI bounces, there is a likelihood of LINK breaking out from the descending resistance trendline and experiencing a 25% increase to the next resistance at $2.45.
Hot Take: What Does the Future Hold for Chainlink?
The future of Chainlink’s price is uncertain, but there are key factors to watch for. The RSI’s behavior and its relationship to the 50 trendline will provide insights into potential price movements. Additionally, supply shortages in Chainlink exchanges have historically driven price increases. Keep an eye on whether the RSI breaks down below 50 or bounces back, as this will greatly influence the future direction of Chainlink’s price.
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