Market Analysis

CHAINLINK PRICE ANALYSIS & PREDICTION (October 7) – Link Bounces Back, Set To Break Out Of This Falling Channel

In line with the recent higher high and higher low formation, Link found new support in the mid-week and gradually regained momentum on a daily scale. This increase could lead to a breakout of a falling channel.

The past two months of trading have brought notable increases in Link’s price as it recovered nicely from $8 after testing the lower boundary of a channel. However, the recovery looks more like a retracement move of the existing bearish impulsive activated from the peak of $23 in March.

Despite that, its bearish pattern is still valid in the mid-term as the price remains captured in a descending channel. It is footing a fresh increase and from the look of things, the price will likely break away from the channel soon. If that happens, we can expect a huge growth in the future.

A rejection at this channel’s upper boundary could subject the price actions to a sideways movement before initiating a major breakout. If this rejection leads to another fall, we may see a decline to the channel’s lower boundary before regaining momentum.

With the new bullish formation on the daily timeframe, the price is much more expected to break out of this channel than to make it. A bigger price movement should be expected!

LINK’s Key Levels To Watch

Source: Tradingview

While Link is footing another move, the closest resistance level to watch for an increase is $13, located at the channel’s upper boundary. Breaking it could allow buying to the $15.2 resistance level tapped in July. The resistance level above it lies at $17.5.

If the price turns weak again as a result of selling, it may break below the weekly $10.3 support to test the $9.3 level. Another support level to watch is $8.1 in case of more dip.

Key Resistance Levels: $13, $15.2, $17.5

Key Support Levels: $10.3, $9.3, $8.1

  • Spot Price: $11.3
  • Trend: Bullish
  • Volatility: High

Disclosure: This is not trading or investment advice. Always do your research before buying any cryptocurrency or investing in any services.

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Image Source: fellowneko/123RF // Image Effects by Colorcinch

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