Chainlink Price Forecast: LINK rebounds ahead of the new week
|- Chainlink resumes the uptrend after finding support at $10.
- The spike in network growth has given the bullish narrative credence.
Chainlink emerged as one of the biggest gainers this week, rallying from the dip under $10 to highs above $13.50. The rally took place amid the tension created in the markets by the United States presidential elections. A correction from the resistance at $13.50 appears to have established higher support at $11.50. At the time of writing, a reversal is underway, with the price almost crossing $12.50.
Chainlink recovery could surpass $13.50
As mentioned earlier, Chainlink is trading at $12.4 after building upon the 100 Simple Moving Average (SMA) support. The bullish case is reinforced by the Relative Strength Index motion towards the overbought area. Closing above the resistance at $13.50 would encourage more buyers to join the market and pull LINK towards $20.
LINK/USD 4-hour chart
Santiment’s network growth metric adds credibility to the bullish scenario by measuring the number of new addresses joining the network. High network growth is a bullish sign for the network and the value of the token. Therefore, it is likely that Chainlink’s upsurge will continue in the new week.
LINK/USD network growth chart
It is worth mentioning that Chainlink may have to stay above the 100-day SMA to sustain the uptrend. Price movement under this level might trigger losses towards $10.
Chainlink daily chart
The 50-day SMA is in line to absorb some of the selling pressure. Note that the primary support lies at the 200-day SMA, slightly above $8. A significant rebound might come into the picture on testing this buyer congestion zone.
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