- Chainlink is currently trading in a long-term range of $5.80 to $9.30.
- Bullish divergence was observed in the weekly RSI.
- LINK blasted through a 60-day declining resistance line.
Since May 2021, the Chainlink price has fluctuated between $5.80 and $9.30. The top and bottom of the range have been validated numerous times.
Recently, the LINK price bounced near the bottom of the range in early January (green icon) and has been rising since.
The upward trend was preceded by a bullish divergence in the weekly RSI that had been developing for more than 7 months. It is worth noting that this is the first instance of such a discrepancy in the weekly time frame. An RSI reading above 50 indicates that the trend is bullish.
If the current upward trend continues, the Chainlink price is likely to reach the $9.30 resistance level.
A weekly closing below $5.80, on the other hand, would push the stock toward the next support level at $4.30.
Price of Chainlink Breaks Through 60-Day Resistance
The daily time frame technical analysis shows that the Chainlink price broke out from a 60-day declining resistance line on Jan. 7. This accelerated the present upward trend.
However, the price must overcome two obstacles before reaching the $9.30 range.
The 0.382 Fib retracement resistance level at $6.96 is the first. The price was already rejected by the level on Jan. 14, resulting in multiple extended upper wicks (red icons).
The 0.618 Fib retracement resistance level at $7.93 is next. This is the last level of Resistance before the range.
If the LINK price successfully reclaims and then validates the $6.96 level as support, it would imply that it will reach the high range.
A rejection, on the other hand, might result in a re-test of the $6 level.
To sum up, while a gain toward the range high at $9.30 is the most likely LINK price analysis, there are two resistances to overcome before the price reaches that level. If they are not cleared, the $6 level may be retested.
