BeInCrypto’s Senior Analyst, Valdrin Tahiri, has recently posted a technical analysis on Chainlink. In his report, he revealed the key reasons behind the recent 35% price hike of LINK and its potential future ahead.
- According to Tahiri, since May’s opening, the Chainlink price has been trading just above the $5.95 support zone. It repeatedly fell below it, but instead of coming to a close, it bounced and made a long lower wick.
- The LINK price dropped to its lowest point of the year on November 20, closing at $5.76 that day. Although this appeared to result in a collapse from the $5.95 support region, the subsequent positive price action led to a recovery. Therefore, the purported breakdown was just a divergence.
- Solid movements frequently follow such deviations in the other direction. This hypothesis is supported by price movement, as Chainlink rose above $7.51 before falling for a slight correction.
- Additionally, the daily RSI rose above 50. The line has been acting as support since May, so it must continue to do so for the Chainlink price projection to be bullish. A daily closure above the $9.40 resistance zone would validate the predicted bullish sentiment.
- The six-hour technical analysis indicates a short-term resistance lying near $7.50. The 0.5 Fibonacci retracement level alongside a horizontal resistance around the region had created the major resistance. A rise toward $9.40 is anticipated if a close is achieved above $7.50.
See Related: Chainlink (LINK) Price Prediction For December
Valdrin Tahiri showed potential support levels and upcoming targets for Chainlink (LINK). Source: BeingCrypto/CryptoMarkets