chainlink priceE broke the descending resistance line and is moving towards the $9.30 resistance area.
Since May 2021, Chainlink price is trading in a long-term range between $5.80 and $9.30. Both the top and bottom of the range have been validated enough times.
Most recently, LINK price bounced off the low of the range in early January (green icon) and has been rising ever since.
The upward movement was preceded by a bullish divergence on the weekly RSI, which has developed over 7 months. Significantly, this is the first time such a divergence is present on the weekly time frame. A movement of the RSI above 50 would confirm that the trend is bullish.
If the upward momentum continues, Chainlink price will be expected to reach the $9.30 resistance area.
On the other hand, a weekly close below the $5.80 area will propel the price towards the next support at $4.30.
Chainlink Price Breaks 60-Day Resistance
Technical analysis on the daily time frame shows that Chainlink worth The 60-day descending resistance line was broken on January 7th. This catalysed the current upward movement.
However, the price faced two hurdles on the way to reach the high of $9.30.
First of all, there is a 0.382 Fibonacci retracement resistance level at $6.96. The level had already rejected the price on Jan 14 and formed several long upper wicks (red icon).
Next up, there is the 0.618 Fibonacci retracement resistance level at $7.93. This is the last resistance before the higher limit.
If LINK price successfully recovers and then validates the $6.96 level as support, it will go a long way in suggesting that it will move higher.
On the other hand, a rejection could lead to a retest of the $6 level.
To conclude, while a move towards the higher range of $9.30 is the most likely LINK price analysis, two resistances remain to be clarified until the price reaches there. Failure to clear them could result in a retest of the $6 level.
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