Chainlink Price Forecast: LINK prepares for a 12% rebound to $14.5
|- Chainlink is battling the resistance at the 200 SMA on the 4-hour chart to confirm the uptrend toward $14.5.
- The consistent network growth over the last two weeks has painted a bullish picture for LINK in the near term.
Chainlink broke down under the ascending wedge pattern as predicted earlier in the week. The sharp drop almost hit $11 but the price rebounded immediately, stepping above $12. At the time of writing, buyers are focused on lifting LINK to higher levels, preferably at $14.5.
Chainlink is on the verge of next bullish run
LINK/USD recovery appears to have stalled at the 200 Simple Moving Average on the 4-hour chart. However, buyers seem relentless in the fight for gains to higher levels. Therefore, closing the day above the 200 SMA is vital to the uptrend eyeing $14.5 as highlighted by the 50 SMA.
Some resistance is expected at the 100 SMA but if demand for Chainlink soars, another bull run might come into the picture. For now, sideways trading action has taken over after being reinforced by the Relative Strength Index.
LINK/USD 4-hour chart
The daily chart shows Chainlink holding above all the three moving averages; the 50 SMA, 100 SMA and 200 SMA. A recently formed golden cross pattern adds credibility to the bullish outlook. The pattern formed after the 50 SMA crossed above the longer-term 100 SMA.
Closing the day above both the 50 SMA and the 100 SMA will add weight to the expected rally, by emphasizing that buyers have more influence.
LINK/USD daily chart
IntoTheBlock’s “Daily New Addresses” on-chain metric shows that Chainlink has had a consistent network growth in the last two weeks. The newly-created addresses on the network formed a higher low pattern.
In other words adoption of the token and the network, in general, is on the rise. Besides, an increase in the number of new addresses joining the network is a positive indicator for potential growth in the price of the token, thus adding credibility to the bullish scenario.
Chainlink network growth chart
It is worth noting that LINK has to hold above the 50-day SMA and 100-day SMA to validate the beginning of the uptrend. Trading below these two moving averages might trigger massive losses under $10. The most robust support on the downside lies at the 200-day SMA.
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