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Is Chainlink REALLY ready for a sustained rally

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Chainlink seemed to be looking bullish once again on the charts after a parallel channel breakout. Moreover, a golden cross on the daily timeframe can be expected to play favorably for LINK and provide an external push over the long run.

However, there are a few near-term hurdles too. Low trading volumes and market momentum continue to plague the market. These factors increase the chances of a throwback within the pattern before LINK advances to higher levels. At the time of writing, LINK was valued at $31.6, up by 4.5% over the last 24 hours.

Chainlink Hourly Chart

Source: LINK/USD, TradingView

Chainlink maneuvered within a parallel channel over the past week as the price revisited certain highs and lows. A successful breakout above the upper trendline allowed LINK to climb above the $31.5 mark for the first time since the 7 September flash crash. Next few targets lay at the $33 and $34 price levels, both of which would allow for a retest of 6 September’s swing high of $36.35.

However, there were some signs that were not very encouraging. For instance, the 24-hour trading volumes have been relatively weak over the past couple of days. Whenever a breakout occurs on low volumes, chances of a throwback are significantly high.

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In such a case, LINK would shift back towards the defensive region of $29.5-$30 and reset before the next upcycle. On the other hand, a ‘fakeout’ would be confirmed if the price slips back within the pattern.

Reasoning 

As LINK saw higher levels immediately after the breakout, the RSI formed lower peaks. This bearish divergence did not play out as expected as the index held above the half-line. However, the index failed to assert itself above the overbought region once again.

From here, an inference can be drawn that LINK’s breakout lacks the conviction to sustain itself at its current level.

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Similarly, while the Awesome Oscillator negated a bearish twin peak, some selling pressure had started to trickle into the market. Meanwhile, the MACD was in a state of equilibrium. The risk of a potential sell-off will be minimal as long as these indicators hold their positions above their mid-lines.

Conclusion 

Based on the aforementioned factors, LINK does not have the legs to continue its upwards journey just yet. A throwback to $29.5-$30 can be expected, levels from where buyers can tackle certain highs once again.

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Chainlink

Chainlink Price Analysis: LINK tests $31.5 previous high, ready for a breakout?

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  • Chainlink price analysis is bullish today.
  • LINK/USD continued to rally overnight.
  • Higher low set at $29 yesterday.

Chainlink price analysis is bullish today as a new higher high was set at $29 yesterday, leading to a sharp increase back to the previous high overnight. Therefore, we expect LINK/USD to break higher and test the $32 mark next.

Chainlink Price Analysis: LINK tests $31.5 previous high, ready for a breakout? 1
Cryptocurrency heat map. Source: Coin360

The cryptocurrency market traded with bullish momentum over the last 24 hours. Bitcoin gained 3.33 percent, while Ethereum is up by 1.22 percent. Meanwhile, Solana (SOL) dominates the market with over 8 percent gain.

Chainlink price movement in the last 24 hours: Chainlink sets higher low at $29, moves back to previous high

LINK/USD traded in a range of $28.76 – $31.54, indicating a moderate amount of volatility over the last 24 hours. Trading volume has declined by 10.56 percent and totals $1.126 billion, while the total market cap trades around $14.42 billion, ranking the coin in 15th place overall.

LINK/USD 4-hour chart: LINK looks to break $32 next?

On the 4-hour chart, we can see Chainlink pushing higher today as bulls target to break the $32 next major resistance.

Chainlink Price Analysis: LINK tests $31.5 previous high, ready for a breakout?
LINK/USD 4-hour chart. Source: TradingView

Chainlink price action has regained its bullish momentum after a struggle to move higher during the middle of October. After a strong first week of the month, LINK/ŪSD found resistance at $28.

A several-week consolidation followed below the resistance until both a high and low was set on the 16th and 18th of October, respectively. From there, LINK started to rapidly advance last week, with the $30 mark reached on Friday.

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Further upside to $31.5 followed over the weekend, with a retracement to $29 retesting previous highs yesterday. Since then, the Chainlink price action has moved higher, approaching the previous high and the $32 next major resistance.

Chainlink Price Analysis: Conclusion 

Chainlink price analysis is bullish today as a higher low was set yesterday, leading to a sharp advance today. Therefore, we expect LINK/USD to break above $32 and look to set further highs from there.

While waiting for Chainlink to move further, read our guides on LTC wallets, Gero wallets, and  DeFi wallets.

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Chainlink partners with AP while LINK price prepares for 50% advance

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  • Chainlink price is currently above a crucial barrier at $29.8, suggesting the start of a new uptrend.
  • A decisive close above $33.2 will serve as secondary confirmation to the bull rally.
  • Associated Press will utilize LINK blockchain to store economic, sports and race data.

Chainlink price has been struggling for after May 19 crash and has stayed below a crucial barrier since then. However, LINK is turning around as it coils up to grapple with this hurdle and trigger a new upswing.

Associated Press leverages Chainlink blockchain capabilities

Associated Press will store critical data onto the Chainlink blockchain. According to the official announcement, developers will create applications on the blockchain to access this data via a Chainlink node.

Users can use this data to build on-chain sports applications, fantasy games or traders requiring information to automate a trade. AP believes that blockchain is a fundamentally important technology that will play a pivotal role in our day-to-day lives.

The announcement further adds,

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Because AP is such an important source for fact-based and trusted information around the world, we see this as an opportunity to provide blockchain users with data and info they can trust. We believe that blockchain networks are a fundamentally important technology because they not only allow but demand veracity.

On a similar note, Billionaire Bunny Club is utilizing Chainlink’s Variable Random Function (VRF) to airdrop ten random Bunny NFTs using Random Number Generator (RNG). As a result, the process will become transparent, fraud-proof and exciting for participating users.

LINK price prepares for lift-off

LINK price has spent more than five months under the 50% Fibonacci retracement level at $33.2 and is currently coiling up to move beyond it. Moreover, Chainlink bulls pierced through the supply zone ranging from $27.01 to $29.80, signaling a shift in the market structure favoring the bulls.

As long as LINK price stays above $29.80, it will remain bullish. However, a decisive close above $33.2 will serve as a secondary confirmation of the uptrend and kick-start a move toward the 70.5% Fibonacci retracement level at $41.35. This climb would constitute a 36% ascent. However, if Chainlink extends its rally to the next barrier at $44.73, it will indicate a 50% increase in the market value of LINK.

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LINK/USDT 1-day chart

LINK/USDT 1-day chart

On the other hand, if the LINK price fails to hold above the demand zone, ranging from $27.01 to $29.80, it will invalidate the bullish thesis. In such a case, Chainlink could head lower to retest the $25.40 support level, where it could give the uptrend another go.

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Chainlink price faces minor sell-off before resuming uptrend

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  • Chainlink price is witnessing its uptrend retreat following a technical signal that indicates the token has reached its local top.
  • LINK is headed lower to retest critical support levels as the bears target $28.61 next.
  • The token may fall toward the lower boundary of the parallel channel as the bulls catch their breath. 

Chainlink price faced stiff resistance at $31.26 as it reached the topside trend line of the prevailing chart pattern and is headed lower as the bulls lose strength. LINK could be headed for a minor sell-off as a critical technical level suggests the token has reached its local top.

Chainlink price dips after facing stiff hurdle

Chainlink price is sliding lower after it tagged the upper boundary of the ascending parallel channel on the 12-hour chart. The Momentum Reversal Indicator (MRI) flashed a top signal at this critical point, suggesting that LINK has just recorded its local top, prompting a sharp reversal.

Although the prevailing chart pattern gives the impression that Chainlink price is headed higher, LINK may need to retest crucial levels of support before resuming its uptrend. The first line of defense for the token is at the 50% Fibonacci retracement level at $28.61. 

Additional support may emerge at the middle boundary of the parallel channel at $28.26 before Chainlink price drops toward the 21 twelve-hour Simple Moving Average (SMA) at $27.66. A spike in selling pressure may see LINK fall toward the following foothold at $26.76, where the 50 and 100 twelve-hour SMAs and 38.2% Fibonacci retracement levels converge. 

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LINKUSDT

LINK/USDT 12-hour chart

Adding credence to the strength of the aforementioned line of defense is IntotheBlock’s In/Out of the Money Around Price model that indicates that the largest cluster of support of 33,330 addresses purchased 43.53 million LINK at $26.99.

LINK IOMAP

LINK IOMAP

However, should Chainlink price see a surge in sell orders, LINK could slide even further, tagging the 200 twelve-hour SMA, which coincides with the lower boundary of the governing technical pattern at $25.11.

On the flip side, if buying pressure increases, LINK would still need to conquer its first hurdle at the 61.8% Fibonacci retracement level at $30.46 before aiming higher toward the upper boundary of the parallel channel at $31.28, where the MRI presents a resistance line. If the bulls manage to slice above the aforementioned obstacle, Chainlink price could target $33.09 next, at the 78.6% Fibonacci retracement level, to set a higher high. 

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