The Chainlink (LINK) price retraces after reaching a new yearly high
The LINK price has been retracing since November 11, when it reached a new yearly high. However, on November 22, LINK created a higher low. Is this the start of another upward movement?
Chainlink Increase Hits Roadblock
Technical analysis of the weekly timeframe shows that the LINK price broke out from a more than 500-day horizontal resistance area in October. This led to four successive bullish weekly candlesticks and a new yearly high of $16.60 two weeks ago. However, last week, LINK created its first bearish weekly candlestick since the breakout.
RSI Indicates Positive Trend, but Overbought Territory
Market traders use the RSI as a momentum indicator to identify overbought or oversold conditions and make decisions about buying or selling an asset. The RSI for LINK is currently increasing and above 50, which are positive signs. However, the indicator is also deep in overbought territory.
What Are Analysts Saying?
Cryptocurrency traders and analysts are bullish on LINK. Mr.Ape believes that the LINK price will increase due to technical and fundamental reasons. Bitcoin Scoop notes that liquidity is building below the price, which could lead to an upward movement. Tony Bitcoin charts a descending wedge pattern and suggests that a breakout above it will trigger a sharp upward movement.
LINK Price Prediction – Is $20 Next?
Daily timeframe technical analysis suggests a bullish outlook for LINK. The Elliott Wave count and RSI readings support this view. If the count is correct, LINK is currently in wave four, which is corrective and may consolidate before another upward movement. The daily RSI has generated hidden bullish divergence, indicating trend continuation. The top of wave five could be a potential target at the long-term resistance of $19.50. However, a decrease below the 0.382 Fib retracement support level at $12.50 could trigger a 30% drop to the 0.618 Fib support at $10.
Hot Take: LINK Price Retraces After Reaching New High, Analysts Remain Bullish
The Chainlink (LINK) price has been retracing after reaching a new yearly high on November 11. Despite this retracement, analysts remain bullish on LINK’s future prospects. Technical analysis suggests that LINK may experience another upward movement after consolidating above the 0.382 Fib retracement support level at $12.50. Analysts point to factors such as the upcoming priority migration for Chainlink staking v0.2 and positive momentum indicators like the RSI to support their bullish outlook. However, it is important to note that a decrease below the $12.50 support level could trigger a significant drop in price. Overall, the future direction of LINK remains uncertain but optimistic.
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