- Chainlink price rallies 23% in days as markets look for a soft landing.
- LINK price is set to skyrocket towards $11 as bulls pick up the buying pace.
- Expect a sharp and quick rally as the RSI hits overbought.
Chainlink (LINK) price has been on fire since last week with 23% gains already, in just a matter of days as investors focus on the possibility of rate cuts by the Fed, and as rumours emerge that inflation could be set to drop. The central theme, the tail risk for 2022, looks to start dropping and could become a tailwind instead of a headwind for global markets as a soft landing becomes one of the possibilities. LINK bulls are using the momentum to welcome back investors absent for over half a year and see the demand side exploding with buy-orders.
LINK price set to explode another 30%
Chainlink price has used the green ascending trend line from June 13 as a level to bounce off and boot-start the rally that is currently underway. As several European countries face another heat wave, the heat under LINK price action is on as well, and sees bulls buying everything in sight for fear of missing out. With this activity, the Relative Strength Index (RSI) nears the ‘overbought’ level and could soon break it, triggering some profit taking and cooling down the rally for now.
LINK price looks set to close above the monthly R1 resistance level and make a stretched rally towards $11.25 with the monthly R3 resistance and the 200-day Simple Moving Average as two bearish elements that will limit any further progress. The RSI will trade further into the oversold area, but not enough to slow down price’s steep ascent before hitting that upper target.
LINK/USD Daily chart
One element that would quickly halt the rally is the monthly R2 resistance level at $9.70, which falls in line with the June 9 top. LINK price action aggressively reversed after hitting that level and dropped a fierce 44% in just four trading days. The risk of repetition and the RSI being overbought could be reason enough to see a quick and sharp decline towards the green ascending trend line for support.
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. The author will not be held responsible for information that is found at the end of links posted on this page.
If not otherwise explicitly mentioned in the body of the article, at the time of writing, the author has no position in any stock mentioned in this article and no business relationship with any company mentioned. The author has not received compensation for writing this article, other than from FXStreet.
FXStreet and the author do not provide personalized recommendations. The author makes no representations as to the accuracy, completeness, or suitability of this information. FXStreet and the author will not be liable for any errors, omissions or any losses, injuries or damages arising from this information and its display or use. Errors and omissions excepted.
The author and FXStreet are not registered investment advisors and nothing in this article is intended to be investment advice.
Recommended Content
Editors’ Picks
Polygon joins forces with WSPN to expand stablecoin adoption
WSPN, a stablecoin infrastructure company based in Singapore, has teamed up with Polygon Labs to make its stablecoin, WUSD, more useful in payment and decentralized finance.
Coinbase envisages listing of more meme coins amid regulatory optimism
Donald Trump's expected return to the White House creates excitement in the cryptocurrency sector, especially at Coinbase, the largest US-based crypto exchange. The platform is optimistic that the new administration will focus on regulatory clarity, which could lead to more token listings, including popular meme coins.
Cardano's ADA leaps to 2.5-year high of 90 cents as whale holdings exceed $12B
As Bitcoin (BTC) gets closer to the $100,000 mark for the first time — it crossed $99,000 earlier Friday — capital is rotating into alternative cryptocurrencies, creating a buzz in the broader crypto market.
Shiba Inu holders withdraw 1.67 trillion SHIB tokens from exchange
Shiba Inu trades slightly higher, around $0.000024, on Thursday after declining more than 5% the previous week. SHIB’s on-chain metrics project a bullish outlook as holders accumulate recent dips, and dormant wallets are on the move, all pointing to a recovery in the cards.
Bitcoin: Rally expected to continue as BTC nears $100K
Bitcoin (BTC) reached a new all-time high of $99,419, just inches away from the $100K milestone and has rallied over 9% so far this week. This bullish momentum was supported by the rising Bitcoin spot Exchange Traded Funds (ETF), which accounted for over $2.8 billion inflow until Thursday. BlackRock and Grayscale’s recent launch of the Bitcoin ETF options also fueled the rally this week.
Best Forex Brokers with Low Spreads
VERIFIED Low spreads are crucial for reducing trading costs. Explore top Forex brokers offering competitive spreads and high leverage. Compare options for EUR/USD, GBP/USD, USD/JPY, and Gold.