- Chainlink price displays strong recovery as key technical pattern illustrates.
- LINK must overcome the 100-SMA resistance to maintain the bullish momentum.
Chainlink price has been on an upswing gaining 44% from the July 20 low of $13.28. The decentralized oracle network token is currently trading hands at $$19.27 showing that bulls are back in town. LINK has flipped the 20-day Simple Moving Average (SMA) from resistance to support, smashed the resistance level at $18.50 and overcome the resistance posed by the 50-day SMA.
Chainlink Price Displays Strong Recovery
It appears that the bulls are in control of the market as the LINK price shows a strong recovery. This is shown by the V-shaped recovery pattern on the daily chart. A V-shaped recovery occurs when a when an asset falls significantly and then makes a sustained upswing. For example, Chainlink price currently trades in the green on the sixth consecutive day. This represents approximately 44% rise from the July 20 low.
If this pattern holds, it is expected that LINK will rise sharpy before running into the next level of resistance at around the $20 psychological level. The target of the V-shaped recovery is $21. However, the next level after that $22 is a more difficult hurdle to overcome but it should not derail the recovery as long as the bullish momentum is sustained.
Chainlink Price (LINK/USD) Daily Chart
Please note that the bullish thesis would be invalidated if LINK retraces below the 100-day SMA. If this happens, Chainlink price could lose 6% to the $18 mark. If more sellers enter the market, a further drop could take LINK back to the $16 level and even drop rapidly towards the July 20 low at $13.8.
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Long-term Outlook, could LINK Re-test $35?
It appears a crucial level for the Chainlink price is the 100-day SMA currently at $18.33. A daily closure above this level could set LINK on a huge price rally. Chainlink could rise to levels above the $30 mark if the bullish momentum is maintained.
With the recent development that a luxury asset-backed NFT DeFi solution, LuxFi is launching its own Chainlink node to avail its premium luxury goods on blockchains, LINK is expected to continue rallying.
While volumes are still low since the May highs, the latest bull run should pull traders back to the market.
More crypto signals show that the predictions for the Chainlink price range from $10 on the lower side and $35 on the higher side by December 2021.
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