New Trend for Chainlink (LINK) analysis June 22, 2023

For more than a year now, the price of the LINK has been going back and forth between 9.50 and 5.50 dollars. The latest bearish movements in the crypto market have caused the benchmark oracle to make a new low from its ATH.

Bearish signal on the LINK?

After having made new low, the price of the LINK came to retest the 5 dollars and then performed at more than 10% in two days. These latter movements now form a double bottom, a figure conducive to a bullish reversal.

When we look at the LINK open interest, we can see that it has been revised upwards in recent days.

Open interest is a measure that represents the total number of open derivative contracts linked to a specific asset. It can help gauge traders’ activity and interest in a particular asset.

So increase in open interest refers to an increase in the total number of open contracts on the LINK. This may suggest an increase in liquidity or a growing enthusiasm for the crypto currency.

The current technical analysis was carried out in collaboration with Elie BR, passionate investor and trader in the cryptocurrency market. Today a trainer at Family Trading, a community of thousands of own-account traders active since 2017. You will find Lives, educational content and mutual aid around the financial markets in a professional and warm atmosphere.

Moving Averages

The price of the LINK is generally below the moving averages 50 and 200 crossing downwards. This is not intended to be reassuring on the bull side. However, we can observe that the daily moving averages are rising slowly, which can warn of a potential trend reversal.

The RSi (Relative Strength Index)

Oscillator side, the daily RSI shows us that the LINK was recently oversold. It is interesting to observe the formation of a nice bullish divergence, suggesting an upward trend reversal.

The assumptions for the price of Chainlink

1. For a bullish scenario, the first objective to consider for the price of the LINK would first be the former support of $6. If the latter is not a problem, the cryptocurrency could then look for $7. Psychological threshold particularly worked according to the VRVP. This scenario could cause the bearish trendline drawn from Chainlink’s ATH to break and provide bullish momentum that would likely pull the price of the cryptocurrency to the top of its range.
2. For a bearish scenario, it would require a comeback and a breakout of the last low made by the Chainlink from its ATH. The latter is slightly below $5. Once done, we could aim for a return to 4.5 or even 4 dollars for the price of the LINK. Level which are likely to be defended in view of the exchanges that there may have been at this level.
3. The last scenario would be more boring with a consolidation around 5 and 7 dollars.

Conclusion

After sticking to its range for nearly a year, the benchmark blockchain oracle price finally ended up breaking its support. This phenomenon has demonstrated a renewed interest from investors which leads to the belief that nice movements could be coming. Hopefully this craze is led by the bulls so that the LINK can take advantage of it. It will be important to carefully observe the reaction of the price on the different identifiable levels to confirm or not the different hypotheses made. Beware of potentialfake out” And “market squeeze” on each of the situations. In addition, it should be remembered that these scenarios are based solely on technical analysis. The price of cryptocurrencies can move more or less quickly, depending on other more fundamental factors of the chainlink project.