Chainlink Price Forecast: LINK must break through this resistance for the ultimate rally to $13
|- Chainlink bullish outlook eyes $13, but first, the 50-day SMA resistance must come out of the way.
- Chainlink continues to expand its price reference feed service in support of the DeFi ecosystem.
Chainlink recently embarked on its upward trend following a period of continued downward price action. Support established at $7.2 assisted buyers to regain balance and control of the price. A reversal from the first week of October has seen the decentralized oracle token step above several key levels like $9, $10 and $11. In the meantime, LINK/USD is doddering slightly above $11 amid a developing bullish momentum.
Chainlink smart contract utility on the rise
Chainlink has become a household name in the decentralized finance (DeFi) ecosystem. A newly launched oracle, BNB/USD, has expanded developers' scope as they can now create more BNB DeFi markets. According to a recent Tweet, Chainlink is "continuously adding new price feeds so developers can quickly and securely build next-generation DeFi products."
Chainlink impending rally to $13
The price reference feed token broke above a descending parallel channel and the 100-day Simple Moving Average. Bullish building momentum is likely to pull the price to higher levels. The only significant obstacle is the 50-day SMA but once broken; it will pave the way for the much-awaited spike to $13.
LINK/USD daily chart
IntoTheBlock's IOMAP model confirms the 50-day SMA resistance level. For instance, the most robust resistance runs from $11.2 to $11.6. Here, nearly 3,000 addresses bought roughly 9.3 million LINK. If bulls gain the strength to push this hurdle into the rearview, Chainlink will quickly rally to $13.
Chainlink IOMAP model
On the downside, it is doubtful that a reversal from current price levels will explore the levels under $10. The model points to the most significant support from $10.22 - $10.6. Here, approximately 6,000 addresses purchased about 34.3 million LINK.
Since the beginning of October, the number of new addresses joining the network has been on a gradual growth pattern, perhaps the fuel behind the impressive price action posted. Unfortunately, IntoTheBlock's "Daily New Addresses" metric reveals a steady drop from roughly 2,000 addresses on October 9 to about 1,600 on October 11. If the decline continues, it may prove difficult for the bulls to support the bullish case to $13.
Chainlink new addresses chart
Looking at the other side of the picture
It is worth mentioning that if the 50-day SMA resistance remains intact, the bullish case to $13 will be invalidated. The decline in the new addresses joining the network could also contribute to the shrinking buying pressure. If the 100-day SMA support is shattered, LINK might resume the downtrend; the pullback could retest the support between $10.2 and $10.6.
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.