Chainlink (LINK) Flashes Signal Never Seen Before

2 mins
Updated by Geraint Price
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In Brief

  • LINK is trading in a long-term range between $6 and $9.30.
  • It is trading inside an ascending parallel channel
  • The weekly RSI is bullish
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While the Chainlink (LINK)price is trading in a bearish pattern, long- and short-term indicators show bullish signs.

The Chainlink price has fallen since reaching a maximum price of $53 in May 2021. The downward movement led to a low of $5.30 in June 2022.

While the price action has been neutral since then, the weekly RSI has given an extremely bullish sign. The indicator generated bullish divergence (green line) for the first time in history. While there has been a hidden bullish divergence (black) prior, there has never been a regular bullish divergence in the weekly RSI in the Chainlink price history.

This bodes well for the future price and could lead to an upward movement toward the $9 resistance area. If that is broken, the rate of increase could accelerate further.

Chainlink (LINK) Weekly Price
LINK/USDT Chart By TradingView

The daily price movement shows that the LINK price has been trading inside an ascending parallel channel since the beginning of May. Such channels usually contain corrective movements.

This means that a breakdown from it would be the most likely scenario. The fact that the Chainlink price is trading in the lower portion of this channel supports this possibility. 

However, the daily RSI casts some doubt in the bearish price forecast. This is because the bullish divergence trend line in place since May (green line) is still intact.

Chainlink (LINK) Price Movement
LINK/USDT Chart By TradingView

The six-hour chart shows a bullish divergence developing since Nov. 19 (green). Moreover, the LINK price broke out from a short-term descending resistance line. As a result, an upward movement toward the middle of the channel is expected. The channel’s midline also coincides with the 0.5-0.618 Fib retracement resistance area at $7.51-$8. 

The reaction once the LINK token price gets there will determine if the future Chainlink price prediction is bullish or bearish. If the rate of increase accelerates, the LINK price may get there in the next 24 hours. 

Conversely, a decrease below the Nov. 21 low of $5.52 would invalidate this bullish Chainlink (LINK) price prediction.

Chainlink (LINK) Short-term price
LINK/USDT Chart By TradingView

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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)
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