Chainlink (LINK), a prominent cryptocurrency, has recently soared to a remarkable yearly high of $17.68, breaking free from six weeks of stable trading. This surge has sparked curiosity in the crypto community, raising questions about its potential to surpass $20 before the year wraps up.
Since hitting a low of $4.90 back in June, LINK’s value has steadily climbed. It struggled initially to overcome a descending resistance trend line, but September saw it finally breaking through. November brought another high of $16.58, but the momentum slowed until this recent uptick led to the new yearly record.
Interestingly, LINK’s journey isn’t without its challenges. It’s currently nestled in a long-term horizontal resistance area, a zone typically tough to break through. Market watchers are keenly observing to see if LINK can maintain its upward trajectory.
Decoding Market Indicators
Traders often turn to the Relative Strength Index (RSI) to gauge market momentum. A reading above 50 with an upward trend usually signals a bullish market, suggesting that buyers have the upper hand. However, the RSI for LINK is showing some signs of bearish divergence, indicating potential weakness.
Expert Opinions and Predictions
Crypto experts are generally optimistic about LINK’s prospects. Analysts from various platforms anticipate a breakout from the current symmetrical triangle pattern, projecting a rise above $20. They also point out a shift in investor focus from cryptocurrencies like SOL and AVAX to ETH and LINK.
Anticipating LINK’s Future Moves
Technical analysts, employing Elliott Wave theory, suggest that LINK might be in its fifth and final wave of an upward trend that began in June. If their analysis holds, the peak of this movement could reach around $23.75, a significant jump from its current position. This target aligns with the length of previous waves and intersects with key resistance zones.
Despite this positive outlook, there’s always the possibility of a downturn. A failure to break through the channel’s resistance could lead to a drop of about 17% to the channel’s support line, roughly at $14. This highlights the dynamic and unpredictable nature of cryptocurrency markets.
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