Chainlink Price Forecast: LINK rebounds ahead of the new week

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.