- Chainlink’s recent technical analysis suggests a potential bullish trend in the near future.
- The cryptocurrency’s inverted head-and-shoulders and falling wedge patterns point towards an optimistic price movement.
- Analysts indicate that a breakthrough above $14.7 could propel Chainlink to reach significant resistance levels.
Explore Chainlink’s latest market performance and technical indicators predicting a bullish trend, revealing potential price targets and critical levels.
Technical Patterns Indicate Potential Bullish Reversal
Chainlink (LINK) has been displaying optimistic signs over the past few weeks, catching the eyes of technical analysts. Recently, an inverted head-and-shoulders formation surfaced on the 4-hour chart, a pattern which traditionally hints at a potential trend reversal. Combined with the falling wedge visible on the daily chart—often predicting the end of a downtrend—these patterns bolster the case for a possible upward breakout in the near future.
Key Price Levels to Watch
Renowned crypto analyst Ali has highlighted a pivotal price point for Chainlink. According to his insights, achieving a sustained close above $14.7 could notably push LINK’s price to $18.3. This milestone aligns with the critical 100-day and 200-day Exponential Moving Averages (EMAs), creating a significant supply zone for traders to monitor.
Current Market Performance and Indicators
At the time of reporting, Chainlink was valued at $14.28 with a 24-hour trading volume of $534,913,283. This marks a 1.94% price increase in the last 24 hours and a 3.64% rise over the past week. The 9-day Moving Average (MA) indicated a slightly higher recent price, suggesting a potential support level around $14.09.
Relative Strength Index (RSI) and MACD Insights
The Relative Strength Index (RSI) reading stood at 53.52, placing it in a neutral zone—neither overbought nor oversold. This balanced market sentiment reflects stability at the current price level. Additionally, the Moving Average Convergence Divergence (MACD) indicator showed a positive histogram value of 0.224, with the MACD line maintaining a position above the signal line by 0.162, reinforcing the bullish momentum observed since early July.
On-chain and Exchange Signals
At the time of analysis, data from IntoTheBlock revealed mixed results for Chainlink. With 49% of holders in profit and a minor 9% at breakeven, the outlook appears cautiously optimistic. Notably, large holders control 69% of the supply, and Chainlink exhibits a strong price correlation with Bitcoin (BTC) at 0.85. Exchange signals showed a bearish ‘Smart Price’ metric at 0.01%, contrasted by a bullish ‘Bid-Ask Volume Imbalance’ of 5.04%.
Conclusion
In conclusion, Chainlink’s technical charts and on-chain data collectively suggest a promising outlook. As traders watch for a breakout above $14.7, the subsequent price movements towards $18.3 could confirm the anticipated bullish reversal. Maintaining a close eye on the Exponential Moving Averages and other technical indicators will be crucial for navigating Chainlink’s upcoming market performance.
