The Chainlink Price Breaks Resistance and Targets $8
The Chainlink (LINK) price has been on the rise since August 17, breaking out from a descending resistance trendline. It has also reclaimed the $7.15 horizontal resistance area. Now, the question is whether LINK will be able to reclaim $8 next.
Chainlink Finds Support and Gains Momentum
Looking at the daily timeframe, the LINK price has steadily increased since reaching a low of $5.60 on August 17. On September 11, it created a higher low and seven days later, broke out from a descending resistance trendline. This breakout led to an acceleration in LINK’s rate of increase, reaching a high of $8.28, just below its yearly high of $8.80.
In addition, LINK successfully cleared the $7.15 horizontal resistance area and validated it as support during a bounce on October 11.
Bullish Signs for Chainlink
The daily RSI (Relative Strength Index) is providing a bullish reading. With RSI being used as a momentum indicator by traders, an RSI reading above 50 indicates an upward trend, while a reading below 50 suggests the opposite. Currently, the RSI has bounced at the 50 trendline and is increasing, signaling a bullish trend for Chainlink.
Positive News and Accumulation
News for the Chainlink network is also positive, as a report suggests that Chainlink is well-positioned to become a strong player in the tokenization of real-world assets (RWA). Additionally, data from Santiment shows that whale accounts have been accumulating LINK over the past 30 days. Furthermore, Chainlink announced multiple integrations of its services across different blockchains.
LINK Price Prediction: Aiming for New Highs
According to technical analysts using the Elliott Wave theory, the current wave count aligns with the bullish RSI and Chainlink bounce. It suggests that the price will continue to increase, with a potential high of $9.30, representing a 23% increase from the current price. However, how the price reacts once it reaches this level will determine if LINK reaches a local top or if it signals a longer-term bullish trend reversal.
Hot Take: Chainlink’s Bullish Trend Continues
The Chainlink (LINK) price has shown strength by breaking resistance levels and finding support. With positive news and accumulation, as well as a bullish RSI and price prediction, LINK seems poised to reach new highs. However, caution should be exercised as a decrease below key support levels may lead to a temporary dip in price. Overall, the trend remains bullish for Chainlink as it continues its upward trajectory.
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