Chainlink Cryptonewsfocus.com
- Chainlink (LINK) has shown bullish momentum after breaking out from a long-term correction, with analysts predicting a potential rise to $22 by the end of 2024.
- Key indicators and support levels suggest a favorable trend if LINK continues to reclaim critical resistance levels.
Chainlink (LINK) has been one of the standout performers in the cryptocurrency market, known for its innovative approach and robust use cases. However, it has faced significant corrections since hitting its yearly high in March. As the market dynamics shift, many analysts believe LINK could be on the cusp of a significant breakout. Here’s why Chainlink might be poised for a surge towards $22.
LINK’s Correction Phase
Chainlink experienced a substantial decline, losing over 50% since its peak in March 2024. The corrective phase saw LINK’s price drop to $8.08 by August 5, 2024. This decline marked a pivotal point, as LINK managed to validate the $8.70 horizontal support area and the 0.786 Fibonacci retracement support level. The bounce from this level suggested a potential end to its long-term correction phase.
Positive Price Movement
Since August, LINK’s price movement has been notably bullish. It reclaimed the support trend line within its descending channel and created its first higher low in September. These movements indicate a possible start to a new bullish trend, signaling that LINK could be ready for upward momentum.
The recent attempt by Chainlink to break out from the channel’s midline is crucial. If successful, it could confirm the end of the correction phase and trigger a significant upward movement. Despite the bullish price action, key indicators like the weekly Relative Strength Index (RSI) and Moving Average Convergence Divergence (MACD) need to turn more favorable. The RSI remains below 50, and the MACD is still under 0. For a confirmed bullish trend, these indicators must cross above these critical levels.
Analysts’ Perspectives
Analysts are optimistic about LINK’s potential. Jesse Olson, a prominent analyst on X, identified a double bottom pattern and received buy signals from his indicators. He suggests that if LINK breaks its trend line, it could rise to the $14-$18 range. Other analysts, including Investing Haven and Mekatataku, foresee even more bullish scenarios, predicting new all-time highs for LINK.
Short-Term Breakout Potential
The six-hour chart for LINK presents a bullish outlook as well. Chainlink has broken out from a descending parallel channel since its local high on August 26. Additionally, it has reclaimed minor resistance at $10.20, supported by an RSI increase above 50 and a MACD above 0. The next significant resistance is at the local top near $12. Breaking this level would further confirm the bullish scenario, paving the way for potential gains towards $18 and eventually $22.87.
Chainlink’s recent price actions across various timeframes suggest a bullish trend for the remainder of 2024. Breaking out from its long-term descending channel could be the catalyst for LINK to reach new heights. If the market conditions remain favorable, LINK could indeed hit the $22 mark, marking a significant recovery and growth from its previous lows.
