The Chainlink (LINK) price has fallen slightly since its yearly high of $16.60 on November 11.
While LINK seemingly regained its footing on November 14, it has initiated a bounce, but can it continue increasing toward $20?
Chainlink Breaks Out from Long-Term Range
The weekly timeframe technical analysis shows the LINK price increased quickly in October. The increase accelerated once the price broke out from the $9 horizontal resistance area, creating four bullish weekly candlesticks.
Before the breakout, the area had been in place for 525 days. The increase culminated with a high of $16.60 last week. In only 28 days, the LINK price increased by 130%.
Cryptocurrency trader CryptoBusy noted this breakout from the long-term range, stating that:
Next time you see a coin consolidating for more than a year, expect a massive movement in its price action!
Crypto Cobrex believes that due to its fundamentals and utility, LINK will outperform all other cryptocurrencies in the long run. He compares it to a decentralized version of an AWS platform, tweeting that:
In terms of data, it offers features like Data Streams, Data Feeds, and Proof of Reserve. For computing purposes, Chainlink provides capabilities such as Functions, Automation, and VRF (Verifiable Random Function). In the realm of cross-chain connectivity, Chainlink has introduced CCIP (Cross-Chain Interoperability Protocol).
The Chainlink team announced that 70 projects are now part of the build program.
The projects receive enhanced access to Chainlink services and technical support. Additionally, eight ecosystems are in the Chainlink Scale program, which helps developers accelerate chain innovation.
Finally, the team announced that Chainlink Staking v0.2 will launch on November 28.
LINK Price Prediction – When Will Increase Continue?
Technical analysts employ the Elliott Wave theory to identify recurring long-term price patterns and investor psychology, which helps them determine the direction of a trend.
The daily timeframe count suggests that the LINK price is in wave four of a five-wave upward movement. Wave four is corrective, correcting an extended wave three, which had more than 2.61 times the length (black) of wave one.
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If the count is correct, LINK will complete wave four near the 0.382 Fib retracement support level at $12.50 (white). The potential bottom could coincide with the launch of Chainlink staking.
While the exact target for the top will be clearer once wave four is complete, a preliminary target is at the long-term resistance at $19.50. The target is 40% above the current LINK price and 55% above the $12.50 support.
Despite this bullish LINK price prediction, failure to bounce at the $12.50 support level can lead to a 30% drop to the 0.618 Fib support at $10.
It is important to note that this would still not invalidate the bullish count. The count will be invalidated if LINK drops below the wave one high (red) at $8.45.
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