Chainlink (LINK) price today ended a six-week consolidation by hitting a yearly high of $17.68.
Despite the high numbers, LINK is still trading within its long-term horizontal resistance zone. Will it explode before the end of the year?
Chainlink Hits Annual High
LINK price has risen since falling to a June low of $4.90. Initially, LINK failed to break away from the long-term descending resistance trend line (red icon). But last September, we finally succeeded in going beyond that.
This rise led to a peak of $16.58 in November, but has slowed since then. After six weeks of consolidation, LINK price finally began an upward movement this week, hitting a yearly high of $17.68 within a long-term horizontal resistance area.
Market traders use RSI as a momentum indicator to identify overbought or oversold conditions and decide whether to accumulate or sell assets.
Readings above 50 and an upward trend indicate that bulls still have the advantage, while readings below 50 indicate the opposite. The RSI has created a bearish divergence (green) and is trending lower, both of which are considered bearish signs.
Read more: How to buy Chainlink with credit card
What do analysts say?
Cryptocurrency traders and analysts at X are resolutely optimistic about the future LINK trend.
Inmortal believes that LINK price will soon break out of the symmetrical triangle and rise above $20. That too Indicates that rotation is in progress. By saying:
Bubba Fox is Optimistic for fundamental reasonsand Kyle Chase Proposes LINK Price Increase It will soon become parabolic.
Read more: What is Chainlink (LINK)?
LINK Price Prediction: $20 before the end of the year?
Technical analysts use Elliott Wave Theory to identify recurring long-term price patterns and investor sentiment, which helps determine trend direction.
The most likely reading indicates that LINK has begun the fifth and final wave (black) of the upward movement that began in June.
If my calculations are correct, LINK completed the fourth wave on December 18th and then began the fifth wave. The fact that the daily RSI breaks away from the bearish divergence trend line supports this possibility.
If LINK breaks out of the channel, the most likely target for the top of an upward move is $23.75, 50% above the current price. The target is found by giving wave 5 the same length as wave 1.
It is also consistent with the resistance trend lines of a long-term ascending parallel channel and a long-term horizontal resistance area.
Despite these optimistic LINK price predictions, a rejection of the channel’s resistance trendline could lead to a 17% drop to the channel’s support trendline of $14.
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