Chainlink (LINK) is trading below the $8.90 resistance area.
Chainlink (LINK) price broke out of a falling wedge on Nov. 23. This could be a rally that will take it back into double digits.
LINK price has traded near $6.40 since May 9. While LINK hit a low price of $5.30, the lowest weekly close was $5.80. Immediately after the close, the Chainlink price created a bullish engulfing candle (green icon).
The candle also validated a bullish divergence (green line) on the weekly time frame. This is the first time in Chainlink’s price history that the weekly RSI has generated a bullish divergence.
However, the price movement is bearish, as LINK was rejected three times (red icon) by the $9.40 horizontal resistance area.
As a result, the price action and the weekly RSI give an opposite perspective to the price forecast. While the RSI is bullish and suggests that LINK price will successfully move above $8.90, the price action indicates that a fall towards the $4.40 long-term support area is expected.
What Does the Chainlink (LINK) Wave Count Say?
The wave count provides bullish price analysis, indicating that the future price will successfully move above the $9.40 resistance area. In turn, this would confirm the bullish divergence on the weekly RSI.
The most likely wave count suggests that the LINK price has completed a corrective A-B-C structure (black). In it, Chainlink is trading below the $8.90 resistance area, wave C turned into a trailing diagonal, hence the wedge shape. The sub-wave count is given in white.
As a result, the most likely Chainlink price prediction is bullish. Conversely, falling below the low of wave C (red line) at $5.52 would invalidate this bullish forecast.
Chainlink Price Predictions 2023, According to Cryptogeek
Earlier this year, noted that cryptocurrencies are seen as a safe haven by many people. It means that not only will cryptocurrencies be used in the coming years, but smart contracts will also see more widespread use.
In this regard, it was predicted that Chainlink could become a really important platform for many investors. Considering the fact that the crypto market will benefit from the lack of trust in fiat money and all the pros of the Chainlink platform itself, it is predicted that by the end of 2023 the price will reach $120 in the worst case. If all the positive factors play well for Chainlink, it could skyrocket to around $300.
Earlier this month, a famous analyst, anonymously named Altcoin Sherpa, had this to say about LINK:
“Okay, I finally did it again, I bought this coin for a partial position. I’ll let it sit and DCA within this range. This is going to be a pretty passive trade for me and I won’t be active on it. I will sell it above $10. ″
In short, Chainlink, like some of the altcoins like Fantom (FTM) and Apecoin (APE) is believed to trigger a robust recovery very soon.
By Audy Castaneda
