Chainlink price ready to escape bandwidth, LINK bullish outbreak looks imminent

  • Chainlink price has been stuck in bandwidth between $25 and $30 for almost ten consecutive days. 
  • LINK price favors upside as positive tailwinds emerge in cryptocurrencies, signs of a bullish majority being formed.
  • Buildup momentum could result in 50% profit when a bull run unfolds.

Chainlink (LINK) price has been range-trading for the past couple of sessions between $25 and $30. This comes after bulls picked up some Chainlink coins when bears tried to push price action back below the red descending trend line in the chart below. As this failed, bulls were able to restore LINK price above $25 and, showing now more signs of an upwards breakout towards $38.40.

Chainlink price shows signs of strength 

Chainlink price has been using $25 as a pivot of support ever since bulls could reclaim the level around August 12. It even briefly turned into resistance after the clear break below at the end of September. Bulls quickly rushed in on October 12 as a potential move below the red descending trend line looked imminent, which would have spelled more downside to come. 

LINK price has been trading back above $25 since then, stuck inside a bandwidth. An exciting element to see is that both the 55-day and the 200-day Simple Moving Average (SMA) are trading sideways as well, near each other. Any bullish uptick would make the 55-day SMA cross the 200-day SMA to the upside and form a golden cross pattern, which would attract more buyers to the scene.

LINK/USD daily chart

LINK/USD daily chart

LINK price should see more buy-volume coming, which would be enough to break above $30 and hit $33. Expect first a rejection and pushback towards $30 and a test of support. Around there, buyers will probably want to step in again as clearly LINK price will have chosen the bullish side. With this second wave of fresh buyers coming in, the $33 level would be breached, paving the way towards $38.40. 

Should market sentiment roll over and riskier assets get chopped, expect bears to easily break back below $25 and target the monthly S1 support level near $18. This would almost be a repetition of what Chainlink price has done on October 12, with a break briefly below the red descending trend line.

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.

Cryptos feed

Latest Crypto News

Latest Crypto News & Analysis

Editors’ Picks

XRP constricts before breaking out to $1

XRP showed strong signs of recovery after the shock of this past Saturday’s flash crash wore off. The past three days of congestion after a strong rally from the lows may begin a new uptrend for XRP.

More Ripple News

Ethereum in a pennant, with bullish breakout as tailwinds reemerge

Ethereum (ETH) price has formed a pennant that quit rapidly after the big sell-off during the weekend. Between $4,646 and $4,060, the price ranges from lower highs and higher lows. 

More Ethereum News

Bitcoin needs support to hold, so that bulls can reclaim $50,000

BTC saw bulls attempting to pair back a significant piece of the occurred losses from last Saturday. But bulls have hit a curb after reclaiming $50,000, as price action fades below and tests the first real support for further downside. 

More Bitcoin News

Cardano price in phenomenal buying zone as ADA targets $3

A brief technical and on-chain analysis on Cardano price. Here, FXStreet's analysts evaluate different patterns and indicators that suggest ADA is primed to advance further.

More Cardano News

The bull and the bear case for BTC

Bitcoin price saw a recent bullish impulse that faced massive headwinds before it tagged a crucial psychological barrier. With directional bias and choppy price action, BTC is likely to experience massive volatility as the situation resolves over time. 

Read full analysis