Crypto currency analyst and strategist Kevin Svenson, known for his accurate predictions, stated that the decentralized oracle network Chainlink (LINK) that attracted attention with its rise seems ready for ongoing rallies. According to the analyst, LINK is preparing for a major breakout rally.
Crypto currency analyst Kevin Svenson stated that LINK may be on the verge of turning its multi-year downtrend into an uptrend after surpassing an important long-term indicator. Svenson explained his expectation for the popular altcoin as follows:
It is breaking the 500-day SMA (simple moving average), which is the longest moving average it has recently surpassed. Chainlink is breaking the 500-day SMA. Breaking above these long-term SMAs is usually a sign of a macro change.
Along with Chainlink giving a potential rise signal, Svenson expects a scenario where the Ethereum (ETH)-based altcoin continues its short-term uptrend and rises towards its macro resistance.
Meanwhile, Svenson pointed out that Chainlink probably needs more time before entering the bullish zone and added, “This macro downward resistance line currently corresponds to about $10.90. So, the range of interest is approximately between $10.13 and $11, to give a whole number.” He further stated:
In the event of a breakout scenario in LINK, if anything is to be sought along these lines, it will be the testing of the $11 level.
Most likely, if there is a breakout from here, it will reach this peak, which is the upper limit of this range. If it truly surpasses this resistance and breaks it, Chainlink may be expected to move downwards to retest lower levels before breaking again at a later date.