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Chainlink Price Breaks Out Of Critical Pattern Aiming For Higher Highs – CryptoTicker.io

Chainlink is currently trading at $12.87 after a massive breakout above a crucial pattern formed on the daily chart. The ascending wedge was established by the end of September and the upper boundary of the pattern acted as a strong resistance level for close to a month before the final breakout today.

LINK is now trading above the 50-SMA and the 100-SMA and the MACD is gaining momentum while bulls are eying up the next price target at $13.26. It seems that above this level there is very little opposition stopping LINK’s price from reaching $18 again.

Chainlink Price Analysis: On-Chain Metrics

One of the clearest bullish metrics for Chainlink is the number of new addresses and active addresses. According to statistics provided by Intotheblock, the number of new addresses joining the chainlink blockchain increased by 21% in the past 7 days.

chainlink price

Similarly, the number of active addresses increased by a whopping 27% in the last 7 days. This notable growth signifies an increase in the interest in LINK by new and old investors.

chainlink price

More importantly, it seems that LINK’s volatility is decreasing even though the price has seen a significant breakout. This usually indicates that the breakout was not caused by random volatility but rather a robust price action from investors.

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Chainlink Price Analysis: Technical Indicators

As discussed above, the most important indicator for LINK is the breakout of the ascending wedge pattern formed on the daily chart. The 6% move in the past 24 hours confirms the semi-breakout that we saw yesterday.

link price

LINK/USD Daily Chart – TradingView

The next price target seems to be $13.26, however, considering the magnitude of the breakout, the most likely scenario will be a breakout of this level in just one move. The entire crypto market flipped bullish in the past week which is also helping Chainlink’s momentum.

The RSI is close to overbought levels but as we have seen in the past, this hasn’t often represented a risk for the bulls, at least not in the short-term. When it comes to total trading volume, Coinmarketcap shows a notable increase in the past week from a low of $700 million per day to a recent peak at $1.85 billion.

This rise in volume in conjunction with the bullish breakout indicates that LINK is really strong currently.

link price

LINK/USD Weekly Chart – TradingView

On the weekly chart, the price of LINK established a higher low at $7.28, however, the last high remains at $20. To continue with the current uptrend, bulls would need to crack the all-time high and climb higher.

The MACD seems to be shifting towards a bullish cross again after three weeks of positive gains while the RSI is not yet overextended. The other potential scenario for Chainlink will be establishing a lower high followed by a higher low again confirming an equilibrium pattern that would favor the bulls.

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Disclaimer: The authors of this website may have invested in crypto currencies themselves. They are not financial advisors and only express their opinions. Anyone considering investing in crypto currencies should be well informed about these high-risk assets.

Trading with financial products, especially with CFDs involves a high level of risk and is therefore not suitable for security-conscious investors. CFDs are complex instruments and carry a high risk of losing money quickly through leverage. Be aware that most private Investors lose money, if they decide to trade CFDs. Any type of trading and speculation in financial products that can produce an unusually high return is also associated with increased risk to lose money. Note that past gains are no guarantee of positive results in the future. 

Posted By

Robert Weiss

Cryptocurrency enthusiast and trader since 2016 with a passion to learn and improve every day.

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