Aaryamann Shrivastava
FXStreet
- Chainlink price has risen by 21.94% in the span of seven days to trade at $8.13.
- LINK is close to recovering its November 2022 losses, provided this bullishness persists and pushes the price to $9.00.
- If corrections pull the altcoin down to $6.77 and lower, it will invalidate the bullish thesis.
Chainlink price is reacting to Bitcoin’s rally, climbing the charts quickly to recover the losses the altcoin witnessed following FTX’s collapse.
The sudden spurt of bullishness noted in the last few days has managed to push the altcoin toward the November 2022 highs, with traders now expecting a breach of this critical resistance level.
Chainlink price is on a rise
Chainlink price is trading at $8.13 after managing to chart significant gains in the last few days. Up by nearly 22%, LINK is following the lead of the broader market as investors appear to be getting bullish.
The crypto Fear and Greed Index suggests the market is experiencing rising greed which could hint at the recent bullishness persisting.
This view is supported by the Moving Average Convergence Divergence (MACD) indicator, which displays a bullish crossover that occurred a few days ago. The MACD line (blue) crossing over the signal line (red) is evidence of the same.
Crypto Fear and Greed Index
If Chainlink price observes positive momentum and the altcoin breaks through and flips its immediate resistance at $8.27, it would also turn the 78.6% Fibonacci retracement of the $8.94 to $5.76 move, into a support floor.
This would provide LINK the boost it needs to rally towards a nine-month range high of $9.33. This price level also marks critical resistance for the altcoin, and flipping it into support will allow the cryptocurrency to chart a 23% rise to $10.00.
LINK/USD 1-day chart
The Relative Strength Index (RSI), however, is nearing the overbought zone above the 70.0 mark. If it breaches into this zone it would suggest a pullback developing for Chainlink price until the market cools down. Thus, LINK could dip to test the immediate support at $7.60.
Losing this level would push the price down to the critical support at $6.77, which marks the confluence of the 50-day and 100-day Exponential Moving Averages (EMA).
If Chainlink price falls below those, it will invalidate the bullish thesis, leading to a decline below $6.
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