Chainlink approaches range high
The daily timeframe shows that the price of LINK has been rising since January 3, when it fell to a low of $12.24. On January 8, it formed an increasing low, which led to the appearance of a bullish engulfing candle. Since then, the token has been growing at an accelerated pace.
The rebound also saw Chainlink recover above the low of the 70-day horizontal range. The coin is now approaching the high of this range, which has not yet been reached this year.
Source: TradingView
Thanks to the upward movement, the relative strength index (RSI) gives positive signals. This momentum indicator has risen above the neutral 50 mark (white icon) after price bounced off the low of the range, a sign of a bullish trend.
What analysts say
Cryptocurrency traders and analysts on Platform X are generally bullish on LINK’s prospects.
Thus, Inmortal calls LINK its favorite for five reasons:
- +500 days of accumulation
- Extension
- Turning Resistance into Support (S/R)
- Reaccumulation
- Extension
Weekly chart LINK/USDT. Source: X
Quinten expects the price to reach $18 soon as it is currently in a re-accumulation phase. Finally, Altcoin Sherpa is less optimistic. The trader highlights an accumulation range but believes price will continue to consolidate before eventually making a bullish breakout.
LINK forecast: is the correction over?
Price dynamics and Elliott wave analysis since June 2023 are giving bullish signals.
The most likely wave scenario suggests that on January 3, Chainlink began the fifth and final wave of the bullish structure (green icon). Most of this movement occurred inside an ascending parallel channel. The price tested it and rebounded.
If this scenario is true, LINK will rise to $23.40 and possibly $30.40. These targets were found by lengthening the fifth wave to x0.382 and x0.618 the length of the remaining waves combined.
This would mean an increase of 50% and 95%, respectively. Reaching the second goal will also allow the price to reach the channel resistance line.
Source: TradingView
On the downside, LINK falling below $12.20 would invalidate the bullish outlook. In this case, the price could fall by 47% to the nearest support at $8.30.
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