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Can Chainlink (LINK) Price Reach $10 Under Current Crypto Market Conditions?

1 min
Updated by Ali M.
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In Brief

  • Chainlink is trading below the $8.90 resistance area.
  • The weekly RSI has generated bullish divergence.
  • Chainlink broke out from a descending wedge.
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The Chainlink (LINK) price broke out from a descending wedge on Nov. 23. This could be a rally that will take it back to double digits.

The Chainlink price has traded close to $6.40 since May 9. While Chainlink reached a minimum price of $5.30, the lowest weekly close was at $5.80. Immediately after the close, the LINK price created a bullish engulfing candlestick (green icon). 

The candlestick also validated a bullish divergence (green line) in the weekly time frame. This is the first time in the price history of Chainlink that the weekly RSI has generated bullish divergence.

However, the price movement is bearish, since Chainlink was rejected thrice (red icon) by the $9.40 horizontal resistance area.

As a result, the price action and the weekly RSI give an opposite outlook on the price forecast. While the RSI is bullish and suggests that the LINK price will successfully move above $8.90, the price action indicates that a fall toward the long-term $4.40 support area is expected. 

Chainlink (LINK) Price Weekly Time Frame
LINK/USDT Weekly Chart. Source: TradingView

The wave count provides a bullish price analysis, indicating that the future price will successfully move above the $9.40 resistance area. In turn, this would confirm the bullish divergence in the weekly RSI.

The most likely wave count suggests that the LINK price has completed an A-B-C corrective structure (black). In it, wave C developed into an ending diagonal, hence the shape of the wedge. The sub-wave count is given in white.

As a result, the most likely Chainlink price prediction is bullish. Conversely, falling below the wave C low (Red line) at $5.52 would invalidate this bullish forecast.

Chainlink (LINK) price wave count
LINK/USDT Daily Chart. Source: TradingView

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In line with the Trust Project guidelines, this price analysis article is for informational purposes only and should not be considered financial or investment advice. BeInCrypto is committed to accurate, unbiased reporting, but market conditions are subject to change without notice. Always conduct your own research and consult with a professional before making any financial decisions. Please note that our Terms and ConditionsPrivacy Policy, and Disclaimers have been updated.

Valdrin Tahiri
Valdrin discovered cryptocurrencies while he was getting his MSc in Financial Markets from the Barcelona School of Economics. Shortly after graduating, he began writing for several different cryptocurrency related websites as a freelancer before eventually taking on the role of BeInCrypto's Senior Analyst. (I do not have a discord and will not contact you first there. Beware of scammers)