Chainlink (LINK) price has rapidly increased over the past two weeks, reaching $19.75 today. This level is the highest price seen since January 2022. LINK also stood out by breaking out of a horizontal area that had been stagnant for about 90 days. So, how much longer will the increase continue? Here are detailed chart analyses and predictions.
Weekly LINK Chart Analysis
Weekly chart analysis indicates that LINK’s price has been rising rapidly since June 2023. The upward movement paused in November at a long-term horizontal area. This led to a consolidation period of 85 days for LINK, under resistance, until last week’s breakout. Today, the LINK price reached $19.75, the highest level in the last two years.
The Weekly Relative Strength Index (RSI) gives a mixed impression for the process ahead. If the RSI value is above 50 and the trend is upward, the bulls still have the advantage, but the opposite is true if the value is below 50. The RSI is rising above 50 and is nearly entering the overbought zone. However, a potential bearish divergence is developing, associated with a reversal of the downward trend in the RSI.
LINK Daily Chart Analysis
In the daily chart analysis, it is possible to say that the upward movement is expected to continue due to the Elliott Wave count. Technical analysts use Elliott Wave theory as a tool to help identify recurring long-term price patterns and investor psychology to determine the direction of a trend.
The most likely assumption indicates that LINK is in the fifth and final wave of its upward movement (black). The sub-wave count is shown in white, indicating that the price is in the third sub-wave. The most likely two targets for the peak of the increase are $24.85 and $28.70. These are found by giving 0.382 to the fifth wave and half the total length of the first and third waves. The latter also coincides with the long-term 0.5 Fib retracement resistance level. LINK’s price needs approximately 30% and 50% increases to reach these levels.
Despite this bullish LINK price prediction, a drop below the highest level of the first sub-wave (red), which is $16.60, would invalidate the count. Then, a 35% drop to the nearest support area at $12.80 could be expected.
