TL;DR Breakdown
- Chainlink price analysis is bullish today.
- LINK/USD saw a substantial advance yesterday.
- Bullish momentum has continued today.
Chainlink price analysis is bullish today as the further upside was still being set after a strong rally yesterday. Therefore, we expect LINK/USD to break the previous high and move towards the next significant resistance at $30.00.
Chainlink price movement in the last 24 hours: Technicals are bullish
The Bollinger bands have been extremely tight over the previous 24 hours, which signifies a very calm trading period with slight fluctuation. In this period of low volatility, when the price is primarily flat, any major breaks out or trend changes are exaggerated and more likely to be substantial.
The Bollinger bands indicator shows that market participants expected volatility in LINK/USD today due to an anticipated event. However, there was not enough volume interest to create a substantial enough move, and therefore prices remained close to yesterday’s high at $28.60.
We expect LINK/USD to continue on its current bullish trajectory and break above $30.00 for further buy opportunities. If momentum weakens, we may see an attempt at retesting previous resistance levels before moving higher.
The Ichimoku cloud, shown on the daily time frame, is a trend indicator that calculates an overall direction of momentum. When a breakout or breakdown occurs smoothly and convincingly, this produces a distinct signal within the trend. Market participants use this to make informed trading decisions when they see key support/resistance levels with precise entry and exit points.
The recent breakout at $28.60 is the perfect example of such a signal, and we can see that price action has continued to move higher in a strong manner after moving above the cloud. We also noticed how sharp this uptrend was, which means there was not enough resistance for it to slow down and consolidate.
As such, we believe price action will continue to move higher and break the previous high at $30.00 for further buy opportunities. If momentum weakens and LINK/USD starts to consolidate, we may see attempts to retest resistance levels before continuing higher.
LINK/USD 4-hour chart: LINK to move to $30 next?
Chainlink price action has struggled to reach further upside over the past weeks. After an initial rally to the $28 mark at the beginning of October, a several-week consolidation followed.
On October 12, the price fell by $1.19 or 6%, setting a higher significant swing low before LINK/USD reversed and climbed back to the $28 resistance level. The $28 mark was briefly broken on October 16, suggesting that bullish momentum is increasing.
After a several-day retracement, the $25.5 mark prevented further downside, leading the Chainlink price to set a higher low. Yesterday, bullish momentum resumed after some consolidation above the support. The $28 mark was reached overnight, with LINK/USD continuing higher today.
The Relative Strength Index (RSI) is currently at around 50 for LINK/USD, meaning that the market is neither overbought nor oversold in the short term. However, if the RSI approaches overbought conditions, we expect to see a pullback before any more gains can be reaped.
Chainlink Price Analysis: Conclusion
Chainlink price analysis is bullish today as the further upside was still being set after a strong rally yesterday. Therefore, we expect LINK/USD to break the previous high and move towards the next significant resistance at $30.00.
Disclaimer. The information provided is not trading advice. Cryptopolitan.com holds no liability for any investments made based on the information provided on this page. We strongly recommend independent research and/or consultation with a qualified professional before making any investment decisions.
