A Chainlink (LINK) indicator gave a signal that previously preceded a more than 300% price increase.
The LINK price also broke out from a more than 500-day horizontal range, reaching a new yearly high today.
Chainlink Moves Outside Accumulation Range
The weekly timeframe technical analysis shows that the LINK price traded in a range between $5.80 and $9 since May 2022. While it briefly fell below the range low in June 2023, it reclaimed the area and validated it as support in September (green icon)
Since then, the altcoin has increased by 120% in less than two months. This culminated with a new yearly high of $13.34 today. The increase also caused a breakout from the range high, which had been in place for 530 days.
Cryptocurrency trader CryptoGodJohn tweeted about the breakout from the long-term range. He stated that LINK is one of the best-looking altcoins in the market right now.
Read More: Top 9 Telegram Channels for Crypto Signals in 2023
Despite the increase, wallet profitability still lags, being at 55%. The main supply block lies at $16.27, and if the LINK price surpasses it, the wallet profitability ratio will go above 80%.
Nevertheless, some positive LINK news hit today. TheBlock announced that:
*HONG KONG’S HASHKEY EXCHANGE TO LIST CHAINLINK FOR PROFESSIONAL INVESTORS –
Users will be able to trade LINK starting on November 10. To celebrate the listing, the exchange announced a quiz with a price equivalent to $640.
LINK Price Prediction – Indicator Supports Increase
The weekly Relative Strength Index (RSI) supports the continuing of the LINK price increase.
The RSI is a momentum indicator traders use to evaluate whether a market is overbought or oversold and whether to accumulate or sell an asset.
Readings above 50 and an upward trend suggest that bulls still have an advantage, while readings below 50 indicate the opposite.
The RSI is moving upwards and is above 50. Also, the indicator has just crossed into overbought territory.
The two previous times the Chainlink indicator gave this signal (white icons) led to upward movements of 320% and 300%, respectively.
Read More: 6 Best Copy Trading Platforms in 2023
A 300% increase from when the RSI crossed overbought territory (green icon) would take the LINK price to the $37 resistance area, causing a breakout above the $18 horizontal resistance.
Despite this bullish LINK price prediction, failure to sustain the increase can cause a 30% drop to the $9 horizontal resistance area. Currently, there are no signs this will be the case.
For BeInCrypto’s latest crypto market analysis, click here.
Disclaimer
In line with the Trust Project guidelines, this price analysis article is for informational purposes only and should not be considered financial or investment advice. BeInCrypto is committed to accurate, unbiased reporting, but market conditions are subject to change without notice. Always conduct your own research and consult with a professional before making any financial decisions.
