The 82-day horizontal range of Chainlink (LINK) is approaching the apex
Chainlink (LINK) has been trading in a horizontal range for the past 82 days, below its midline.
Prior to this range, LINK made a significant advance from July 2023, breaking a long-term resistance trend line.
Chainlink struggles with long-term sustainability.
The weekly time frame technical analysis shows that the LINK price has increased significantly since July 2023. The upward movement accelerated in October, resulting in a divergence from the long-term descending resistance trend line.
In the last week of December, the price of LINK reached a new annual high of $17.68. However, it has since fallen, forming two long upper wicks (red icons) and a lower high. The reduction confirmed the long-term horizontal resistance position.
The weekly Relative Strength Index (RSI) provides a dull reading. The RSI is a momentum indicator that traders use to determine whether the market is overbought or oversold.
A reading above 50 and an upward trend indicates that the bulls are still in advantage, while a reading below 50 indicates the opposite.
Although the RSI is above 50, it is in a downtrend, and the bearish divergence trend line (green) is still intact, both of which are considered signs of weakness.
Read more: What is Chainlink (LINK)?
What do analysts say?
Cryptocurrency traders and analysts at X are bullish on the future trend of LINK. Altcoin Sherpa suggests an upward move after the current consolidation ends. She tweeted:
#LINK Marines have been through the chop for 1.5 years, do you think another 75 will hurt them?
InmortalCrypto revealed a similar period of accumulation following an upward trend. Finally, CryptoMichNL believes that the price will soon increase to $25.
Read more: How to buy Chainlink with a credit card
LINK Price Forecasting: Determining the Movement of Regions
The daily timeframe chart shows that LINK has been trading in a horizontal range between $13.30 and $16.60 over the past 82 days. The low and high ranges have been verified several times, most recently on January 20 (red icon).
Currently, LINK is trading below the median line of the range. Additionally, the daily RSI has reached the bottom (red circle) of 50, which may provide resistance.
The wave count suggests that the price of LINK will decrease from the range. Technical analysts use the Elliott Wave theory to determine the direction of the trend by studying recurring long-term price patterns and the psychology of investors.
The most likely count indicates that LINK is in wave four of a five-wave upward move. The sub-wave count is given in black. In it, LINK is at the end of the ABC correction.
Waves A:C at a 1:1 ratio lead to a low of $11.40, 20% below the current price. The low corresponds to the 0.5 Fib retracement support level.
Despite this HIDDEN LINK price forecast, a recovery of the upper range of $16.60 could trigger a 30% rise to the next resistance at $19.30.
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Disclaimer
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