Chainlink Price Forecast: LINK aims for a 10% rally in an attempted inefficiency fill
|- Chainlink price has shattered past the first weekly FVG extending from $10.100 to $10.743, only to face another.
- With a new inefficiency presenting, LINK could rise 10% to test the next FVG extending from $12.333 to $13.153.
- To confirm continuation of the uptrend, the altcoin must decisively breach the midline of the weekly FVG at $12.719.
Chainlink (LINK) price is trading with a bullish bias, with the price action recording higher highs and higher lows as it bulldozers past key barriers. It follows the broader market, led by Bitcoin (BTC) as cryptocurrencies travel north.
Also Read: Chainlink Price Prediction: LINK poised to hit $20 as Open Interest rises by 104%
Chainlink price eyes 10% gains
Chainlink (LINK) price is up almost 65% since September 11, with the move sending LINK past a weekly fair value gap (FVG) extending from $10.100 to $10.743. At the time of writing, the market value of LINK is $11.319, with prospects for more gains given momentum is still increasing. Further, with a second layer of weekly FVG still existing from $12.333 to $13.153, the cryptocurrency experiences a constant pull north to fill the imbalance.
Increased buying pressure above current levels, therefore, could send Chainlink price north to test the lower boundary of this order block at $12.333. Further north, the gains could see LINK breach its midline at $12.719 to confirm the continuation of the rally.
In a highly bullish case, Chainlink price could break past the FVG and foray past the $14.000 and $16.000 psychological levels to test the supply zone order block. Such a move would constitute a 40% climb above current levels.
The Relative Strength Index (RSI) supports this outlook, with its position above 50, specifically at 72 showing bulls are leading the LINK market. The Awesome Oscillator (AO) indicators are also in the positive territory, with green histogram bars to show bulls are leading the market.
LINK/USDT 1-week chart
Chainlink on-chain metrics support bullish outlook
On-chain metrics from Santimemt support the bullish outlook, showing that the supply of Tether (USDT) market capitalization has increased, pointing to increased capital inflow with the intention to buy LINK. The social dominance for LINK is also up, as more and more investors continue to talk about LINK on social media. There is also a significant rise in whale transaction count, with the engagement among large holders acting as a bullish sign for the cryptocurrency.
LINK Santiment
Conversely, a rejection from the FVG, provoked by early profit taking could send Chainlink price south, dropping below the support offered by the current order block, confirmed by a slip through the $10.000 psychological level. In a highly bullish case, the slump could see LINK drop below $8.148 back into the consolidation phase or worse, extend a leg down to the $5.565 support floor. Such a move would constitute a 50% fall below the current price.
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