Chainlink price to complete its 33% rally, but what comes next could surprise you


Share:
  • Chainlink price eyes a retest of the range high at $9.32 and vows to complete its 33% ascent.
  • Investors should note that completion of this rally could produce a bearish triple tap setup.
  • A flip of the $9.32 hurdle on a daily time frame will invalidate the bearish thesis for LINK.

Chainlink price has shown incredible resilience as it flipped a crucial resistance barrier and continued its rally. This development is coming to an end as it approaches its target. 

Chainlink price at inflection point

Chainlink price created a $6.38 to $9.32 range after crashing 43% between May 10 and May 12. This range has regulated the movement of bulls and bears since then. After creating multiple equal lows around the range low at $6.38, LINK triggered its rally on June 13 and has so far recovered 69% of its losses.

During this ascent, Chainlink price has sliced through the 30-day, 50-day and 100-day Exponential Moving Averages (EMAs) and is currently eyeing a retest of the range high at $9.32. 

While this development is bullish, Chainlink price could rally another 8% to retest the range high, but due to multiple equal lows and Bitcoin’s inherently bearish outlook, things could come undone. Moreover, LINK seems to be forming a triple tap setup, which is a reversal pattern.

If the said setup is complete, Chainlink price could trigger a crash to $7.29 and, in a highly bearish case, sweep the range low at $5.28. Although this development might seem impossible considering the short-term bullish structure of the altcoins, market makers will likely push the altcoin lower to collect liquidity.

So, investors must be prepared for a complete undoing of the gains witnessed since June 13.

LINK/USDT 1-day chart

LINK/USDT 1-day chart

On the other hand, if Chainlink price produces a daily candlestick close above the range high at $9.32 and flips this level into a support floor, it will invalidate the bearish thesis for LINK.

This development could propel the oracle token to the 200-day EMA at $11.37.

 

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.

Join Telegram

Follow us on Telegram

Stay updated of all the news

Join Telegram

Recommended content


Follow us on Telegram

Stay updated of all the news

Join Telegram

Recommended Content

Editors’ Picks

XRP price loses its 25% month-long uptrend as Ripple CTO calls buyback proposal a “scam”

XRP price loses its 25% month-long uptrend as Ripple CTO calls buyback proposal a “scam”

XRP price recovery over the month of January has been rather dull in comparison to the rest of the large-cap cryptocurrencies, such as Ethereum and Solana.

More Ripple News

Here is why falling bond prices this Monday are of importance for the Polygon price later this week

Here is why falling bond prices this Monday are of importance for the Polygon price later this week

Polygon (MATIC) price tanked slightly around the US opening bell as markets are still pricing in the turn of events from past Friday on the back of the US jobs report. 

More Polygon News

Will Bitcoin bulls remain in control of BTC price after another volatility-filled week?

Will Bitcoin bulls remain in control of BTC price after another volatility-filled week?

Bitcoin price witnessed a massive rally in January 2023, and sustained above the $23,000 level while facing macroeconomic headwinds. Another week of catalysts could test the resolve of bulls as BTC price remains firmly the two-year lows of the bear market at $22,800. 

More Bitcoin News

Can the bond market sell-off negatively impact Binance Coin price?

Can the bond market sell-off negatively impact Binance Coin price?

Binance Coin (BNB) price must see quite a few crypto traders puzzled this morning when looking at the charts. With several cryptocurrencies slipping lower, the risk is increasing that cryptocurrencies are lagging on the overall market reaction.

More Binance Coin News

Bitcoin: Nonfarm Payrolls on the radar after Powell’s speech propels BTC higher

Bitcoin: Nonfarm Payrolls on the radar after Powell’s speech propels BTC higher

Bitcoin (BTC) price is at an inflection point as it continues to rally amid multiple sell signals on lower time frames. The Nonfarm Payrolls (NFP) report, including the unemployment rate and average hourly earnings, is set to be announced on February 3 at 1330 GMT.

Read full analysis

BTC

ETH

XRP