On this last day of the month, Chainlink records an increase of more than 26% in November. Let’s see the future outlook for the LINK price.
Status of Chainlink (LINK)
Chainlink recently left its range from the top, leaving behind all the levels mentioned in the October 19 analysis. Within two months, it saw an increase of more than 100%. Thus, LINK set a new annual record by reaching $16.60. Currently, the price of Chainlink is around $14. It now appears to be entering a consolidation phase or beginning the start of a correction. LINK remains above its 50 and 200 day moving averages, clearly trending and crossing upwards. This reinforces the idea that the cryptocurrency is currently in an uptrend. Concerning the oscillators, they indicate bullish momentum. However, a certain decrease in their intensity should be noted. This could indicate a bearish divergence which, in turn, supports the hypothesis of a near-term decline ahead.
The current technical analysis was carried out in collaboration with Elie FT, a passionate investor and trader in the cryptocurrency market. Today trainer at Family Tradinga community of thousands of own-account traders active since 2017. You will find Lives, educational content and mutual assistance around the financial markets in a professional and warm atmosphere.
Focus on derivatives (LINKUSDT)
Based on the liquidation heatmap, the $15.50 level appears to be where the largest number of pending orders are concentrated. As the market approaches this threshold, it is likely that these orders will be triggered, which could then increase the volatility of the cryptocurrency. This characteristic makes this area particularly interesting for investors.
Hypotheses for the price of Chainlink (LINK)
If the price of Chainlink crosses and remains above $16, we could anticipate a bullish continuation up to the $18-20 level. The next resistance to take into account, if the upward movement continues, would be the $28 threshold. At this stage, this would represent an increase close to +96%.
If the price of Chainlink fails to hold above $16, we could envisage a return to $11-12. The next support to take into account, if the bearish movement continues, would be around $10. At this stage, this would represent a drop close to -30%.
Conclusion
Chainlink price broke out of its range, reaching a new yearly high. Currently, it appears to be consolidating just below the $16 threshold, which appears to be key resistance. A breakthrough beyond this level would be crucial to anticipate a continuation of the uptrend. Until this happens, the risk of a corrective phase remains present. Thus, it will be important to carefully monitor the price reaction at different key levels to confirm or refute the current hypotheses. Beware of potential “fake out” and “market squeeze” in each situation. Additionally, let’s not forget that these scenarios are based solely on technical analysis. The price of cryptocurrencies may change more or less quickly, depending on other more fundamental factors.
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