The Chainlink price saw considerable upward momentum until January 10 and has been on a retracement ever since. However, the retracement phase might be over as LINK’s price shows promise of a surge that could push its price by 20% and beyond in the upcoming future.
At press time, Chainlink’s price is trading $15.89 and is bouncing off a confluence of support levels further helping the bullish case.
Chainlink 4-hour chart
Source: LINKUSD TradingView
LINK broke out of the ascending parallel channel and has been trying to get back in. After two failed attempts, the price might finally be able to head higher as it now sits on the confluence of supports that include the short, mid, and long length EMAs and the 0.382 Fibonacci level. Hence, the support is strong and LINK is likely to bounce off this support.
In addition, the MACD indicator has flashed a bullish crossover hinting at the buyers’ pressure. The RSI indicator also showed that there is room for the Chainlink price to grow.
However, the OBV indicator formed a bearish crossover with the price indicating the possibility of a short-term drop. Considering the strong support present beneath the price, this drop will likely bounce from the 0.382 Fibonacci level at $15.19 leading to a higher high. This surge has the potential to push higher and not only breach into the parallel channel but also invalidate the sell-signal presented by the SuperTrend indicator.
Hence, in the long run, LINK is expected to climb, be it to the top of the channel or towards the middle line. An ascent to the latter would mean a surge of 19%, however, a rise to the top of the channel’s trendline would mean at least a 25 to 30% price surge. All-in-all, Chainlink is poised to surge at least 10 to 30% in the mid-to-long term.
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