Chainlink analysis – LINK course picks up speed
3 min readThe Chainlink price has been in a sideways range since May last year. Despite ever new partnerships – like recently with the young open source project Starkware – and a high relevance of the data oracle for the DeFi sector, among others, the bulls have not yet managed to initiate a breakout from the wide trading range between US$ 5.30 and US$ 9.60. Most recently, however, the LINK course was able to re-establish itself above the moving average EMA50 (orange) and is currently also trying to overcome the EMA200 (blue). If the bulls succeed in a sustainable recapture, Chainlink could regain momentum.
Bullish price targets: $7.78, $8.00/$8.10, 9.27/9.64 USD, 10.83 USD, 12.28 USD, 12.82/13.49 USD, 15.03 USD, 18.33/19.50 USD
Chainlink: Bullish price targets
To confirm its breakout above the EMA200, the LINK price must also just clear the next resistance level from the 61 Fibonacci retracement and history high from December 2022 at $7.78. A directional decision then occurs in the $8.00 to $8.10 zone. If the link course overcomes this zone, a march through to the upper edge of the trading range of the last eight months should be planned.
If Chainlink reaches the turquoise zone between US$9.27 and US$9.64, the short-term target range would have been completed. Ideally, the LINK price bites down here and initiates a breakout. If the bulls stabilize above $8.10 and Chainlink breaks above the turquoise resist area, the next price target around $10.82 will come into focus.
However, this resistance should only briefly hold the bulls on their way towards the medium-term price target area. If this resistance is pulverized, a march through to USD 12.28 can be expected.
A direct jump into the red zone between US$12.82 and US$13.49 would also be conceivable. This area has acted as a resistance multiple times in the past. In addition, two other important price hurdles are the higher-level 38 Fibonacci retracement of the entire downward movement and the 161 Fibonacci projection of the current trend movement. Increased profit-taking is to be expected.
Only if the overall market can also move back north on a sustained basis could Chainlink target the higher-level purple target area between $18.32 and $19.50 via the intermediate station at $15.03.
Bearish price targets: $7.35, 6.80/6.63 USD, 6.20 USD, 5.91 USD, 5.54 USD, 5.31 USD, $4.99, 4.58 USD
Chainlink: Bearish price targets
As long as the bears parry the breakout above $8.10, a retaliation cannot be ruled out. If the buyer camp fails to stabilize above $7.35, the orange zone between $6.80 and $6.63 will come into focus again. With the 38 Fibonacci retracement and the EMA50, this chart area represents solid short-term support.
A fold would send Chainlink back towards $6.20. In addition to the 23 Fibonacci retracement of the current movement, the super trend is also running nearby. From a bull perspective, the sell-off below this price level must be averted. However, if an attempt at stabilization fails, the stalemate continues and the green zone in the area of the lower edge of the existing trading range comes into focus again.
If the bears succeed in approaching this strong support zone between US$ 5.54 and the previous year’s low of US$ 5.31, it will be decided whether Chainlink will break to a new low or whether the buyer side can turn things around again.
If there is no clear price reversal to the north, and the LINK price falls out of the green support area to the south at the end of the day, the correction movement should extend immediately into the gray support zone from the first half of 2020 between USD 4.99 and 4. Expand $58. This area represents the maximum bearish price target.
Looking at the indicators
The RSI still shows a buy-signal after falling back to the neutral zone between 45 and 55. The MACD indicator should also form a new long signal on the daily chart if it breaks through the golden pocket at $8.00.
In the weekly chart, the RSI is still in the neutral zone with a value of 51, but is currently also trending north. The MACD also shows a stable buy-signal. From an indicator point of view, nothing stands in the way of a bullish price movement towards the upper edge of the sideways channel.
