Technicals Point to 125% Explosion for Chainlink’s LINK Cryptocurrency – When to Expect the Rally
Chainlink (LINK) is a cryptocurrency that powers the Chainlink decentralized oracle network. Technical analysis suggests there could be a bullish breakout before the end of 2023.
In July 2023, LINK broke out above a ‘Channel Up’ chart pattern that formed on the weekly timeframe. This breakout took the price to resistance at $8.50, a level that acted as resistance multiple times in 2023 (in March and August).
Although LINK was rejected at this $8.50 barrier in July, a falling wedge pattern has now formed which could point to an upside breakout.
The falling wedge is a bullish pattern where trendlines connecting lower highs and lower lows converge. As the pattern nears completion, the tightening range reflects decreasing selling pressure that could foreshadow a bullish breakout.
If LINK breaks out above the falling wedge, a move to retest the $8.50 resistance would be likely. A break above $8.50 could open the door for further gains, possibly a 125% move targeting $15 by end of 2023 as bullish momentum accelerates.
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Looking at indicators, the MACD line is above the MACD signal line which is a bullish sign for momentum. The MACD line crossing above the signal line can signal an upside breakout. Meanwhile the RSI is around 50 which is neutral, reflecting the recent consolidation.
Key support zones for LINK are found at $6.00 and $5.00, which were previous resistance levels now flipped to support. On the upside, resistance zones are found at $8.50 and $9.50.
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Chainlink’s Whale Moves
Chainlink whales—those who hold substantial amounts of Chainlink (LINK) tokens—play a pivotal role in influencing the asset’s price. Let’s delve into some instances that demonstrate the impact of these whale activities on LINK’s market value:
- In July 2023, a notable crypto whale made headlines by acquiring $6 million in LINK tokens, triggering a 6.5% uptick in the asset’s price.
- Fast rewind to June 2023, Chainlink’s large holders became particularly active, transferring sizable quantities of LINK. This activity led to a more than 3% price ascent.
- Fast forward to September 2023, a significant investment of $24 million in LINK by Chainlink whales ignited discussions among traders regarding its potential influence on market trends and price movements.
- Conversely, June 2023 also witnessed Chainlink whales offloading their LINK holdings following a two-year low in its price. This led to a market dominated by selling activities, which adversely affected LINK’s price.
These examples underscore the considerable influence that Chainlink whales wield on the cryptocurrency’s price dynamics.
Conclusion
In summary, Chainlink appears to be coiling for a bullish breakout in 2023. A falling wedge breakout combined with a MACD bullish crossover could ignite an uptrend toward the key $8.50 resistance zone. If $8.50 is surpassed, LINK could rally over 100% toward the $15 target in the coming months.
However, if $6.00 support fails, it would invalidate the bullish thesis. Therefore traders may look to enter long on a clear break above the falling wedge pattern with a stop under $6.00.
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