25 February, 2024

Chainlink (LINK) Breaks Free: Can it Sustain Momentum Beyond $18?

3 weeks ago

13 Feb, 2024

  • Chainlink (LINK) has surged to $17.98, its highest since April 2022, with a 16.58% increase in 24 hours.
  • Analysts anticipate a breakout if Ethereum’s momentum continues, potentially pushing LINK to $25-$30.
  • Mixed technical indicators, including a high RSI, suggest caution as Chainlink navigates its current price levels.

Chainlink (LINK) is making waves with its latest performance, having seen a notable increase that has taken its price to $17.98, a peak not witnessed since April 2022. This surge has propelled LINK’s trading volume to an impressive $1.5 billion over the last 24 hours, marking a significant upturn of 16.58%.

These developments come amid anticipations of a broader market rally, particularly with Ethereum gaining momentum. As per Michaël van de Poppe, a renowned blockchain figure, if Ethereum continues its upward trajectory, Chainlink could experience a substantial breakout. He also highlighted the possibility of potentially pushing its value to the $25-$30 range in the foreseeable future.

DaanCrypto highlights that a Crypto Trader & Investor Chainlink attempts to break free from a lower to mid-timeframe trading range. This pivotal movement has many investors closely watching to see if LINK can maintain its breakout momentum and ascend beyond the $18 mark.

However, a deeper dive into the technical indicators reveals mixed signals, as the 4-hour Relative Strength Index (RSI) for Chainlink stands at a lofty 79.86, placing LINK in the overbought zone. Typically, such a high RSI reading hints at a potential pullback or correction in the near term, as the market may consider the asset overvalued at its current price level.

Moreover, the Know Sure Thing (KST) indicator points towards a bullish momentum for Chainlink, suggesting that the price could continue its upward trajectory in the short term. This is further supported by the 4-hour Average Directional Index (ADX), which stands at a level indicating a robust ongoing trend. The ADX reading suggests that Chainlink’s current price movement is solid and likely to maintain its current direction.

Chainlink/USD 4-hour price chart, Source: Trading view

Despite these positive indicators, an ADX reading above 25 confirms a trending market and warns of potential volatility ahead. Such market conditions necessitate vigilance and consideration of the increased risk of sudden price movements.

Chainlink’s current market position is a blend of promising bullish signals and cautionary indicators of potential volatility. As the crypto market continues to evolve, keeping a close eye on these developments is crucial.