Chainlink Price Prediction: The uptrend rally depends on these factors

Chainlink price has produced strong retaliation signals this week. After a strong recovery rally, the price auctions near a previously broken support zone. Key levels have been identified to gauge whether or not LINK has more fuel in the tank.

Chainlink price takes charge

Chainlink price is worth keeping a close eye on going into the final trading weekend of November. As of November 25, the oracle-based blockchain token has recovered 27% of market value following a persistent downtrend throughout the month.

Chainlink price currently trades at $6.84, just below the 21-day simple moving average (SMA). The 8-day exponential moving average (EMA) was pierced without a retest and prompted a rally into the SMA, where the price consolidates. A breach through the SMA could provoke an additional 40% uptrend hike toward the monthly high of $9.48. The Volume Indicator shows bulls could face a challenge in doing so as the transactions remain spare during the 27% uptrend move.

The Relative Strength Index shows a bearish divergence between the current price and the previous uptrend spike that occurred on Thursday, November 10. Keeping this in mind, and the fact that the candles are progressively getting smaller during the rally, a pullback into the 8-day exponential moving average at $6.20 stands a fair chance of occurring. If the indicator does not hold as support, then a sweep-the-lows event targeting $5.52 would become a strong possibility.

Invalidation of the bearish outlook could occur if the bulls can conquer the top of the daily candle which pierced through the 21-day SMA earlier in the month at $7.50. A breach of $7.50 would give more confidence that a 40% rally toward the monthly high at $9.48 is underway.

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