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Why You Should Pay Attention to This Chainlink Price Development

2 mins
Updated by Ryan James
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In Brief

  • Chainlink is facing long-term resistance at $9.
  • The weekly RSI has generated bullish divergence.
  • LINK is following a short-term resistance line.
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LINK is the native token of the Chainlink network. It connects smart contracts with each other through a decentralized oracle network. The network is supported by node operators, data providers, and smart contract developers.

The Chainlink price has decreased since its $53 all-time high in May 2021. So far, it reached a low of $5.30 in June 2022.

Since then, the Chainlink price has made several unsuccessful attempts (red icons) at breaking out above the $9 resistance area. Despite the rejections, the LINK price never fell below its June lows.

The bullish divergence in the weekly RSI (green line) is a very gripping development. The divergence is occurring for the first time in Chainlink’s price history.

This catalyzed an upward movement toward the $9 resistance area and suggests the future price movement may be bullish.

If Chainlink reclaims the $9 area and breaks out from the descending resistance line, it would confirm that the trend is bullish.

Chainlink Resistance Line
LINK/USD Weekly Chart. Source: TradingView

The six-hour chart supports the continuation of the upward movement.

While the Chainlink price is following a descending resistance line, it is currently making its fourth attempt at breaking out. Since lines get weaker each time they are touched, an eventual breakout is expected.

Moreover, the six-hour RSI broke out from its own descending resistance line, something which often precedes price increases.

The resistance line coincides with the 0.382 Fib retracement resistance level. If LINK successfully breaks out, the final resistance area prior to the $9.40 highs would be $7.50. This is created by a horizontal resistance area and the 0.5 Fib retracement resistance level. So, a breakout above it could quickly take Chainlink to $9.

On the other hand, failure to break out could lead to a fall toward the Nov. lows at $6.

Chainlink Six-Hour Breakout
LINK/USD Six-Hour Chart. Source: TradingView

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Disclaimer

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.

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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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