The Price of Chainlink (LINK) Approaches Yearly High
The price of Chainlink (LINK) has broken out from a descending resistance line and is approaching its yearly high. This bullish movement is supported by the weekly and daily timeframe readings.
Technical Analysis in the Weekly Timeframe
In the weekly timeframe, the LINK price has been increasing since June. It reclaimed the $5.80 horizontal support area, which has been in place since April 2022. Although it failed to break out from a descending resistance line, it is making another attempt to do so.
The upward movement was accompanied by a bullish divergence in the weekly RSI, indicating that bulls still have an advantage. A breakout from the long-term descending resistance line could lead to a significant increase in the LINK price, with the closest resistance at $9.40.
How Long Will Chainlink Continue Increasing?
In the daily timeframe, the LINK price broke out from a descending resistance line on September 18, suggesting that the previous downward movement has ended. The daily RSI also moved above 50, indicating a bullish trend.
The Elliott Wave count supports the continuing increase, with two potential counts for future movement. The bearish count suggests a high near $9.50, while the bullish count indicates that LINK could reach at least $12 and break out from the long-term descending resistance line.
However, there is a possibility of a 20% drop if there is a sudden loss of momentum or rejection from the descending resistance line.
Hot Take: Chainlink (LINK) Poised for Bullish Breakout
The price of Chainlink (LINK) is showing promising signs as it approaches its yearly high. With bullish readings in both the weekly and daily timeframes, a breakout from the descending resistance line could lead to significant gains. The bullish divergence in the weekly RSI further supports the positive outlook for LINK.
While there is always a possibility of a market correction or rejection from the resistance line, the overall trend suggests that LINK has the potential to continue increasing. Traders and investors should closely monitor these developments and consider their trading strategies accordingly.
Sources: TradingView
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