Chainlink price in bounce mode as price action prints new weekly high

Chainlink (LINK) price action is jumping higher this Tuesday as markets are seeing some positive elements coming from all angles. Dovish comments on Monday from the Fed’s Brainard, the dollar weakening, Zelensky opening up the dialogue for peace talks, Biden-Xi meeting not seeing tensions ramp up. Take your pick on the reason or combination of reasons why suddenly markets flip the switch toward risk-on, but it is certainly a good thing for LINK price action.

LINK price could be seen hitting $7.50 soon

Chainlink price action has pure technical positives and some good cards in the game for more upside potential. First, price action was underpinned by the drop to the downside on Monday at $5.70, which falls in line with the low of July 10. That has created a swing back up, and from the looks of it this is turning into a bit of a rally.

LINK price action first will need to face the monthly S1 at $6.68, which could still trigger a rejection back to the downside. Once that hurdle is cleared, the road is wide open to hit $7.50 at the monthly pivot, holding 17% gains. Interesting in that area is the 55-day and the 200-day Simple Moving Average coming in toward each other near that level, which could trigger another bullish follow-through once broken above.

LINK/USD daily chart

Still there are quite a lot of devils in details. After the XI meeting, Biden came out saying that China is not set to invade Taiwan anytime soon. The statement did not mention that China has scrubbed the plans. This is similar to Ukraine, where Zelensky asked for peace talks, but the US and Russia already held some that did not bear any progress. Expect, with these black Swan events, a quick correction to the downside should violence flair up again. $5.26 to $5.02 is a sandbag that might catch any crashing price action in Chainlink.