While Chainlink (LINK) price is trading in a bearish pattern, both the long and short term indicators are showing bullish signs.
Chainlink price has declined since hitting the all-time high of $53 in May 2021. The June 2022 downside hit $5.30.
While the price action has remained neutral since then, the weekly RSI has indicated extreme bullishness. The indicator produced a bullish divergence (green line) for the first time in history. While there has been a hidden bullish divergence (black) before, there has never been a regular bullish divergence in the weekly RSI in Chainlink price history.
This bodes well for the price in future and it could witness an upside move towards the $9 resistance area. If it is broken, the rate of growth may accelerate further.
Chainlink Price Prediction: Will The Channel Head For A Breakdown?
The daily price action shows that LINK price has been trading inside an ascending parallel channel since the beginning of May. Such channels usually have corrective activities.
This means that a breakdown from this would be the most likely scenario. The fact that Chainlink price is trading in the lower part of this channel supports this possibility.
However, the daily RSI casts some doubt on the bearish price forecast. This is because the bullish divergence trend line since May (green line) is still intact.
The six-hour chart shows a bullish divergence since Nov 19 (green). Besides, LINK price broke a short-term descending resistance line. As a result, an upward movement towards the middle of the channel is expected. The midline of the channel also coincides with the 0.5-0.618 Fibonacci retracement resistance area at $7.51-$8.
The reaction of the LINK token price once it gets there will determine whether the future Chainlink price forecast is bullish or bearish. If the rate of increase accelerates, LINK price could reach there in the next 24 hours.
Conversely, a further drop below the November 21 low of $5.52 would invalidate this bullish Chainlink (LINK) price prediction.
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