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Chainlink Price Forecast: LINK marches towards a new all-time high of $43

  • Chainlink price is primed for a volatile move as it sits in a pivotal point.
  • A bullish continuation pattern projects 33% gains post-breakout.
  • The health of the previous uptrend favors a resolution to the upside.

Chainlink price has fluctuated in an ascending triangle since late February. The volume profile during the triangle has trended lower, adding certainty that the selling pressure was exhausted. 

Chainlink price triggers a buy signal

Critical to the ascending triangle evolution has been the constant support at the 50-day simple moving average (SMA). In fact, there have only been three daily closes below this trend following indicator since the February 23 low.

On Wednesday, Chainlink price rose over 11% and activated the SuperTrend indicator’s buy signal. These type of bullish formations have occurred other times in the ascending triangle, but the lastest one came at 50-day SMA support, thereby adding credence to its relevance.

If traders can propel LINK above the March 9 high at $32.00, a rally should materialize that will carry the token to the all-time high at $36.92, delivering a 17% gain for traders. The next major profit target is the topside trendline that runs thoughout all the major peaks since February 2020, including the most receant record high. 

The exuberant profit target for LINK is the 1.382 extension level at $43.00, representing a 36% gain from the current price levels, and it surpasses the measured move target of $42.00.

LINK/USD daily chart

LINK/USD daily chart

On the downside, the 50-day SMA will provide some initial support, but it won’t be much help if heavy volume accompanies a reversal of the breakout. Substantive support comes into play at the price region defined by the 100-day SMA currently at $22.10 and the February low at $21.00.

Author

Sheldon McIntyre, CMT

Sheldon McIntyre, CMT

Independent Analyst

Sheldon has 24 years of investment experience holding various positions in companies based in the United States and Chile. His core competencies include BRIC and G-10 equity markets, swing and position trading and technical analysis.

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