Chainlink recently achieved a new annual high, indicating positive market performance. The weekly chart illustrates a price increase following a dip to $4.90 in June. Initially, the token struggled to overcome the long-term descending resistance line (red icon). However, in September, LINK managed to surpass this level.
The price reached its peak at $16.58 in November but has since experienced a slowdown. After consolidating for six weeks, LINK finally began an upward movement, resulting in a new yearly high of $17.68 within a long-term horizontal resistance area.
Source: TradingView
However, the RSI index has formed a bearish divergence (green) and is currently decreasing, which might indicate weakness in the market.
Market analysts and cryptocurrency traders on Platform X are generally optimistic about LINK’s prospects.
One trader, Inmortal, believes that LINK’s price will soon experience a bullish breakout from the symmetrical triangle, surpassing $20. They also suggest a current shift towards “from $SOL and $AVAX to $ETH and $LINK.”
12-hour LINK/USDT. Source: X
Another trader, Bubbafox, remains bullish on LINK’s fundamentals, while Kyle Chase predicts that the price rally will soon become parabolic.
The question remains: Will LINK reach $20 before the year ends?
According to the Elliott Wave analysis, the most likely scenario suggests that LINK has entered the fifth and final wave (black) of the bullish structure that began forming in June.
If this prediction is accurate, then LINK completed the fourth wave on December 18 and subsequently started the fifth wave. The bullish breakout of the daily RSI’s bearish divergence trendline further confirms this possibility.
If the price breaks out of the channel, the most probable target for the peak of the uptrend would be $23.75, representing a 50% increase from the current price. This target aligns with the resistance line of the long-term ascending parallel channel and the long-term horizontal resistance area.
Source: TradingView
Despite this positive outlook, LINK’s potential rebound from the channel resistance line may lead to a 17% decline towards the channel support line at $14.
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