Chainlink (LINK): The Ongoing Bullish Reversal

December 8, 2020   Chainlink

The last time we published the price prediction for Chainlink (LINK), the buyers had initiated a slow recovery upon finding the bottom of a gruesome 64% correction. During the correction, the price had collapsed from the all-time high at $19,85 to $7.28, probably leaving a lot of traders stuck with losing positions, while the more foresighted ones got a marvelous chance to buy LINK at the bottom of the through.

LINK hints at the bullish sprint to $15

This week, Chainlink opened at $11.6 after the bearish previous week that dragged the price down by 4.8% at the close of the week. But in the past seven days, LINK managed to make a 16.2% recovery, though it had tested $10 briefly.

1-week LINK/USDT chart

The price action on the weekly time frame tells us that LINK has already established the distinctive diagonal support that highlights the lower lows. It’s obvious that the consolidation phase is coming to a close, so we expect a sizable move to the upside to happen in the next three to six weeks. This expectation is supported by the rising buying volume that has already engulfed the volume from the previous five weeks, which suggests that the breakout above $13 is practically a done deal, given LINK has gained 6% in the last 24 hours.

The parting moving averages of Stochastic began heading to the upside for the first time since May, which signals that the momentum is shifting in favor of the bulls. The rise of the oscillator to 50 will confirm the trend direction;

The Accumulation/Distribution (A/C) indicator is at the highest extremities, hence also confirming the trend direction and telling us of its underlying bullish strength.

Key price levels on this time frame:

  • $9.7 - $10  - the horizontal support that maintains the structure of the nascent uptrend;
  • $11.32 - the diagonal support that also serves as a frame for the uptrend.
  • $15 - the area of resistance and also a more conservative price target.

On the daily time frame, the price action has taken the shape of a nice ascending channel, which LINK is bound to break to the upside if the resistance at $15 would crumble, or to the downside or into a range if the sellers won’t allow a passage. Here we also see a promising volume profile, which shows the buying volume shooting upward, a clear confirmation of the ongoing rally.

1-day LINK/USDT chart

After a quick dip below the support at 51, RSI is again driving up, showing that the buyers have coped with flipping the momentum to their side; A/C is trending upward diligently, reinforcing our expectation of LINK testing the $15 area during this or the next price spike.

Key price levels:

  • $10.8 - the horizontal support that might be revisited before the price makes an attempt at $15;
  • $15 - a conservative price target for the anticipated move;
  • $18 - a more aggressive price target;
  • $9.5 - the recommended area for stop-loss placement.

But at the moment, the larger part of the market, including Bitcoin (BTC), is retracing, which leaves open the possibility of a slide to $10.5 - $10.8 before making a charge at $15.

 Author: Alex Paulson for

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