Chainlink Price Prediction As New Found Recovery Targets $8

For the past several weeks, the Chainlink price has demonstrated a horizontal trading pattern, oscillating between the foundational support at $5.75 and an overhead resistance trendline positioned at $6.45. Throughout this consolidation phase, the coin price has rebounded both these levels thrice, underscoring their prominent influence on traders’ psyche. With the crypto market currently exhibiting a bullish trend, the buyers have recently pierced through the upper trendline, hinting at the onset of a renewed upward momentum.

Also Read: BTC Price Set for Rally to $31,000, Key Events to Watch This Week

Can Buyers Prolong the Recovery Rally by Another 18%

• With an intraday gain of 10%, the LINK price shows high momentum recovery in action
• A breakout from the downsloping trendline will accelerate the buying pressure
• The intraday trading volume in the Chainlink coin is $291.5 Million, indicating a 248% gain.

Source- Tradingview

On September 12th, the LINK price rebounded from the monthly support of $5.75 with an inside-day bullish candlestick pattern. Following this reversal, the coin price catapulted by a commendable 19% within a week, positioning itself at $6.72 as of now. 

With the bullish momentum still aggressive, the investors are set to tackle a declining resistance trendline that has historically dictated the correction course over the previous two months. A bullish breakout over this falling trendline would solidify the market’s confidence in a prolonged bullish trajectory. 

Upon achieving this breakout, the traders can anticipate the LINK price to soar by roughly 18%, aiming for the $8 mark and eventually extending towards $8.45.

Can LINK Price Fall Back to $5.75

Over the past two months, the LINK price has witnessed dynamic resistance from the downsloping trend. At this juncture, traders tend to encounter a resurgence in selling momentum evidenced by the two reversals in the daily chart. Should the coin price exhibit a downturn from this trendline, and in the process, slip below the freshly surpassed $6.45 level, it might signal a continuation of the correction trend, potentially retracing back to its established support at $5.75.

• Bollinger Band: The coin price challenges the upper band of the Bollinger band indicator reflecting that the buying activity is aggressive 
• Relative Strength Index: The daily RSI slope rising above 60% indicates suitable bullish momentum for a directional recovery.