- Chainlink outperforms the majors like Bitcoin and Ethereum with a full-blown rally.
- LINK nears its next profit target at $30 but sees the rally take a breather as the broader cryptocurrency space gets traction.
- With a big bag of supporting elements, the only way is up for Chainlink with a price target set at $40.
Chainlink (LINK) has been an outlier for the first ten days of 2022 when most cryptocurrencies were on the back foot, but in the case of Chainlink the altcoin booked a solid 50% gain with an additional 46% of gains to come if the trend sees continuation. As price action takes a breather at $29, new investors will want to mark up a few technical levels to get engaged and enter into a rally that could continue towards $40. With global markets on the front foot today, a turn in sentiment could provide an additional tailwind to the rally and see fresh money coming in.
Chainlink sees sentiment tailwinds added to the momentum
Chainlink defied the laws of physics by being one of the few cryptocurrencies that rallied in a risk-off environment that was subdued by Omicron worries and the FEDs hawkish rate path in 2022. These worries sparked a broad and aggressive sell-off in equities and pushed investors to chop positions in riskier assets. Chainlink advanced with ease, however, and turned a few essential technical levels into support, which now come into play as the rally takes a breather after the Relative Strength Index (RSI) hit the overbought marker.
The first line of defense to uphold the uptrend is the intersection from the green ascending trend line acting as the rally's backbone with the monthly R1 resistance level at or around $26. This will be the first crucial test and window of opportunity for new investors to join the rally. If that does not hold, look for a false breakout with $25 as a supportive historical line and the 200-day Simple Moving Average (SMA) coming in flat around that same level.
LINK/USD daily chart
If the global market rout returns, expect to see an accelerated move to the downside with the break of the green ascending trend line and the 200-day SMA. The break of that 200-day SMA opens the door towards $21.60, which has already been chopped up in the past few weeks and thus will only slow down the correction but will not be able to stop it entirely. Instead, look for that $15 low from December 04 to provide an endpoint for the downturn.
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
Ethereum dips slightly amid Renzo depeg, BlackRock spot ETH ETF amendment
Ethereum (ETH) suffered a brief decline on Wednesday afternoon despite increased accumulation from whales. This follows Ethereum restaking protocol Renzo restaked ETH (ezETH) crashing from its 1:1 peg with ETH and increased activities surrounding spot Ethereum ETFs.
Injective price weakness persists despite over 5.9 million INJ tokens burned
Injective (INJ) price is trading with a bearish bias, stuck in the lower section of the market range. The bearish outlook abounds despite the network's deflationary efforts to pump the price. Coupled with broader market gloom, INJ token’s doomed days may not be over yet.
US intensifies battle against crypto privacy protocols following crackdown on Samourai Wallet
CEO Keonne Rodriguez and CTO William Lonergan of Samourai Wallet were arrested by the US Department of Justice (DoJ) on Wednesday and charged with $100 million in money laundering on a count and illegal money transmitting on another count. This move could see privacy-focused cryptocurrencies take a dip.
Near Protocol Price Prediction: NEAR fulfills targets but a 10% correction may be on the horizon
Near Protocol price has completed a 55% mean reversal from the bottom of the market range at $4.27. Amid growing bearish activity, NEAR could drop 10% to the $6.00 psychological level before a potential recovery. A break and close above $7.95 would invalidate the downleg thesis.
Bitcoin: BTC post-halving rally could be partially priced in Premium
Bitcoin (BTC) price briefly slipped below the $60,000 level for the last three days, attracting buyers in this area as the fourth BTC halving is due in a few hours. Is the halving priced in for Bitcoin? Or will the pioneer crypto note more gains in the coming days?