Chainlink’s rise is unstoppable after rising more than 61% over the last seven days to reach a high of $11.8 0n Wednesday. Weekly gains have reached 49%, and it trades 94% higher than its January 1 opening.
The latest uptrend seems to be losing momentum as LINK turns down, recording 1.6% losses over the last 24 hours. Its trading volume is also decreasing but it is still massive, currently standing at $837 million, according to data from CoinMarketCap.
The recent surge in Chainlink’s price can be attributed to the overall bullish sentiment in the crypto market over the last week. The recent surge in crypto prices is primarily driven by the anticipation of Bitcoin ETFs entering the market in the near-term.
This development has led to a significant increase in the price of Bitcoin, which, in turn, has positively impacted the broader market.
Chainlink, which was previously hovering around $7.3, was considered heavily undervalued, making its recent price jump even more noteworthy.
Is it Time To Buy Chainlink?
LINK is trading at $10.8, 7% below Wednesday’s day high of $11.8. The oracle’s token is trading in a second straight bearish session as sellers take profits on the latest rally.
Even so, the technical setup favors the upside in the near term, suggesting the bulls could still lead the market.
The Relative Strength Index (RSI) is in the overbought zone and the price strength at 78 suggested that the buyers were controlling the market.
As such, the Chainlink price could continue the uptrend, revisiting the $11.8 swing high level the next couple of days. This would represent a 7% climb from the current price.
Rising higher than this would bolster the bulls to push the Chainlink price higher with the next logical move being the $12.5 psychological level or the 127.2% Fibonacci Retracement level at $13. This would bring the total gains to 20%.
LINK/USD Daily Chart
Conversely, the RSI showed that LINK was massively overbought which appears to have paved the way for profit-booking. Increasing overhead pressure could see the Chainlink price lose the support recently established at $10.8, embraced by the 78.6% Fibonacci line, potentially moving toward the $10 psychological level or the 50% retracement level at $9.55.
In the worst-case scenario, the slump could see the Oracle network token drop toward the 23.6$ extension level at $8.3 or revisit the demand zone between $7.15 and the $8.0 psychological where all the major moving averages lie. Such a move would complete the retracement, undoing all the recent gains while invalidating the bullish thesis.
Source: https://www.analyticsinsight.net/chainlink-price-prediction-link-rises-61-to-11-8-time-to-buy/