After a period of volatility earlier this month, Chainlink (LINK) has shown bullish momentum and emerged as a top performer in the crypto market over the past week. The coin is currently trading in an upward channel and has recently experienced a golden cross, indicating a potential increase in value in the near future.
However, a look at the Relative Strength Index (RSI) offers the possibility of red candlesticks or sideways moves in the coming days. The RSI is approaching the overbought zone above 70.0, which typically leads to corrections as the market cools down after a period of overheating.
Currently, LINK is trading above the $6.50 level and the 100 simple moving average on the 4-hour chart. Furthermore, if the bulls gain power and unleash bullish momentum, the price is predicted to break out of the ascending channel and test its resistance level at $7.25. If there is upside pressure, resistance could emerge around $7.45, followed by significant levels at $7.50, $8.00 and $8.20. The next major hurdle is expected around $8.50, with a potential test at $8.80 after a breakout.
Here are the targets revealed by the analyst.
Analysts predict a bullish trend in the short term
Crypto analyst Kevin Svenson suggests that Chainlink (LINK) could be on the cusp of a breakout rally. He points out that LINK recently surpassed the 500-day Simple Moving Average (SMA), a key long-term indicator. Is this a possible sign of a broader shift in the cryptocurrency’s trajectory? Svenson is nodding and anticipating a short-term bullish trend, possibly rising towards the macro resistance level.
Moreover, looking at the RSI indicator, he warns that LINK may need more time before entering a full-fledged bullish phase. He highlights a resistance line around $10.90, suggesting an area of interest between $10.13 and $11. In the event of a breakout, a retest at lower levels may occur before a sustained upward move occurs. Currently, LINK is valued at $7.60, which represents a decline of 2% in the last 24 hours.
On the other hand, it seems that the price is currently waiting to reflect the Federal Reserve’s decision, crypto legislation, economic turbulence and more!