Chainlink Price Forecast: LINK has a clear path to $16
|- Chainlink rebounded massively over the weekend from the support formed last week at $11.
- LINK has eyes on $16, especially if on-chain metrics continue to improve.
Chainlink has rallied 122% from September’s lows at $7.2. The spike above $16 last week saw bears swing into action, leading to a correction towards $11. LINK’s bulls appear to have regained most control over the price and are ready for another liftoff above $16.
Chainlink eyes $16 as pressure behind the token builds
LINK is trading slightly above $14 after recovering from last week’s support near $11. The token is also within the confines of an ascending parallel channel, suggesting that the uptrend is still intact.
Meanwhile, bulls have eyes on $16 but await the ultimate liftoff to $20.A break above the channel’s middle boundary would cement buyers’ position in the market and perhaps create enough volumes for a bullish price action towards $16 and $20, respectively.
A golden cross formed after the 50 Simple Moving Average on the daily chart crossed above the 100 SMA doubles down on the bullish building momentum. Besides, the Relative Strength Index hints at a growing buyers’ grip.
LINK/USD daily chart
IntoTheBlock’s IOMAP model reveals that Chainlink has a clear path to $16 as long as on-chain levels remain unchanged or improve further. However, some subtle resistance is expected between $14.4 and $14.9. Here, roughly 14,500 addresses had previously bought approximately 3.5 million LINK. A break above this range might boost LINK above $16.
Chainlink IOMAP chart
On the downside, immense buyer congestion shows that correction from the current price levels is doubtful. Nearly 12,000 addresses had previously bought around 21 million LINK in the massive support range running from $12.7 to $13.1.
LINK/USD weekly chart
The weekly chart highlights a possibility where the TD Sequential indicator may present a sell signal in the coming sessions or a few days. The call will manifest in a green nine candlestick. The bearish outlook could see enough selling pressure, forcing Chainlink to fall in one to two four daily candlesticks. In other words, the above bullish narrative would be invalidated.
Information on these pages contains forward-looking statements that involve risks and uncertainties. Markets and instruments profiled on this page are for informational purposes only and should not in any way come across as a recommendation to buy or sell in these assets. You should do your own thorough research before making any investment decisions. FXStreet does not in any way guarantee that this information is free from mistakes, errors, or material misstatements. It also does not guarantee that this information is of a timely nature. Investing in Open Markets involves a great deal of risk, including the loss of all or a portion of your investment, as well as emotional distress. All risks, losses and costs associated with investing, including total loss of principal, are your responsibility. The views and opinions expressed in this article are those of the authors and do not necessarily reflect the official policy or position of FXStreet nor its advertisers.