Is it too late to be part of the Chainlink rally


Share:
  • Chainlink price rallies 23% in days as markets look for a soft landing.
  • LINK price is set to skyrocket towards $11 as bulls pick up the buying pace.
  • Expect a sharp and quick rally as the RSI hits overbought. 

Chainlink (LINK) price has been on fire since last week with 23% gains already, in just a matter of days as investors focus on the possibility of rate cuts by the Fed, and as rumours emerge that inflation could be set to drop. The central theme, the tail risk for 2022, looks to start dropping and could become a tailwind instead of a headwind for global markets as a soft landing becomes one of the possibilities. LINK bulls are using the momentum to welcome back investors absent for over half a year and see the demand side exploding with buy-orders.

LINK price set to explode another 30%

Chainlink price has used the green ascending trend line from June 13 as a level to bounce off and boot-start the rally that is currently underway. As several European countries face another heat wave, the heat under LINK price action is on as well, and sees bulls buying everything in sight for fear of missing out. With this activity, the Relative Strength Index (RSI) nears the ‘overbought’ level and could soon break it, triggering some profit taking and cooling down the rally for now.

LINK price looks set to close above the monthly R1 resistance level and make a stretched rally towards $11.25 with the monthly R3 resistance and the 200-day Simple Moving Average as two bearish elements that will limit any further progress. The RSI will trade further into the oversold area, but not enough to slow down price’s steep ascent before hitting that upper target.

LINK/USD Daily chart

LINK/USD Daily chart

One element that would quickly halt the rally is the monthly R2 resistance level at $9.70, which falls in line with the June 9 top. LINK price action aggressively reversed after hitting that level and dropped a fierce 44% in just four trading days. The risk of repetition and the RSI being overbought could be reason enough to see a quick and sharp decline towards the green ascending trend line for support.

 

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