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This Chainlink (LINK) Indicator Signal Previously Led to 300% Increase – Will History Repeat?

3 mins
Updated by Ryan James
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In Brief

  • Chainlink (LINK) price has risen since August 17, breaking out from a descending resistance trendline and reclaiming the $7.15 resistance area.
  • The RSI and the wave count from the daily timeframe both provide positive readings. Recent news from the Chainlink network is also positive.
  • Despite this bullish LINK price prediction, a decrease below the October 11 low of $7.10 will mean that the future price trend is still bearish.
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A Chainlink (LINK) indicator gave a signal that previously preceded a more than 300% price increase.

The LINK price also broke out from a more than 500-day horizontal range, reaching a new yearly high today.

Chainlink Moves Outside Accumulation Range

The weekly timeframe technical analysis shows that the LINK price traded in a range between $5.80 and $9 since May 2022. While it briefly fell below the range low in June 2023, it reclaimed the area and validated it as support in September (green icon)

Since then, the altcoin has increased by 120% in less than two months. This culminated with a new yearly high of $13.34 today. The increase also caused a breakout from the range high, which had been in place for 530 days.

Cryptocurrency trader CryptoGodJohn tweeted about the breakout from the long-term range. He stated that LINK is one of the best-looking altcoins in the market right now.

Despite the increase, wallet profitability still lags, being at 55%. The main supply block lies at $16.27, and if the LINK price surpasses it, the wallet profitability ratio will go above 80%.

LINK Price Movement
LINK/USDT Weekly Chart. Source: TradingView

Nevertheless, some positive LINK news hit today. TheBlock announced that:

*HONG KONG’S HASHKEY EXCHANGE TO LIST CHAINLINK FOR PROFESSIONAL INVESTORS –

Users will be able to trade LINK starting on November 10. To celebrate the listing, the exchange announced a quiz with a price equivalent to $640.

The weekly Relative Strength Index (RSI) supports the continuing of the LINK price increase.

The RSI is a momentum indicator traders use to evaluate whether a market is overbought or oversold and whether to accumulate or sell an asset.

Readings above 50 and an upward trend suggest that bulls still have an advantage, while readings below 50 indicate the opposite.

The RSI is moving upwards and is above 50. Also, the indicator has just crossed into overbought territory.

The two previous times the Chainlink indicator gave this signal (white icons) led to upward movements of 320% and 300%, respectively.

A 300% increase from when the RSI crossed overbought territory (green icon) would take the LINK price to the $37 resistance area, causing a breakout above the $18 horizontal resistance.

LINK Price Prediction
LINK/USDT Weekly Chart. Source: TradingView

Despite this bullish LINK price prediction, failure to sustain the increase can cause a 30% drop to the $9 horizontal resistance area. Currently, there are no signs this will be the case.

For BeInCrypto’s latest crypto market analysis, click here.

Top crypto platforms in the US | March 2024

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Disclaimer

All the information contained on our website is published in good faith and for general information purposes only. Any action the reader takes upon the information found on our website is strictly at their own risk.

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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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