Will Chainlink (LINK) price volatility return in October?
Since April, the price of Chainlink (LINK) has fallen below a downtrend line.
At this point, relative strength index movement is particularly insightful in determining chainlink price volatility.
Does chainlink reach the top every year?
Technical analysis of the daily timeframe shows that LINK's price has experienced significant volatility since April.
During this period, 46% and 33% (red) drops and 77% and 46% increases were observed.
LINK also fell within a descending resistance trend line during this period. The trend had two reversals on July 20 and September 30 (red icons).
The first rejected a 33% discount, and the second caused a slight pullback.
After falling to a low of $7.20, LINK formed a engulfing candlestick with a long low wick (green icon). This type of candle making removes all the losses from the past.
The long lower wick shows that buyers have entered quickly, ending the previous decline.
According to Sergey Nazarov, founder of ChainLink, in the news, banks have problems with blockchain adoption.
This is because of the huge investment in SWIFT's infrastructure, which complicates the blockchain adoption process.
Chainlink Price Forecast: Will Volatility Return in October?
Daily time frame RSI can be used to determine the future trend. RSI is a popular indicator among traders to gauge momentum and inform decisions on buying or investing.
If the RSI reading is above 50 and the trend is up, bulls have an advantage. If the reading is below 50, the opposite is true.
The indicator shows that 46% and 33% of Chainlink's price decline occurred after the daily RSI reached overbought territory (red circle).
With this in mind, the RSI reached an overbought region on September 30. It's down 8% so far.
An interesting signal comes from the relationship between the RSI and the 50 trend line. In both previous deals, a bearish move was confirmed only after the RSI broke below 50 (green circle). This has not yet occurred in the current reduction.
It's also worth noting that on October 3rd, the supply of Chainlink currency hit a 15-month low. Historically, shortages like these have caused prices to rise.
Therefore, the future LINK price prediction RSI below 50 can be known to break or collapse. A crash could lead to a 23% discount to $6.35.
If the RSI hovers, the altcoin may break out of a long-term downtrend resistance line. In this case, there is a 25% increase to the next resistance at $2.45.
Click here for BeInCrypto's latest crypto market analysis.
Disclaimer
In accordance with Trust Project guidelines, this price analysis article is for informational purposes only and should not be construed as financial or investment advice. BeInCrypto is committed to accurate, unbiased reporting, but market conditions are subject to change without notice. Always do your own research and consult with a professional before making any financial decisions.
