As Chainlink breaks $10.6, could $16.8 be next? Analysts weigh in!

LINK

As a seasoned analyst with over a decade of experience in the cryptocurrency market, I find myself quite intrigued by the current state of Chainlink [LINK]. The recent breakout at $10.6 and subsequent 18.58% return on investment is nothing short of impressive.

In more straightforward terms, the price of Chainlink (LINK) surpassed a significant barrier at around $10.6 within a four-hour time frame, leading to a substantial 18.58% profit for investors.

The rapid advancement of this breakthrough was unyielding, without any immediate reversal, indicating a possible robustness in the subsequent price movement.

Nevertheless, there are obstacles in the ongoing decline trend that started in March, which has been lasting for a while. Important resistance levels to keep an eye on are at $13.1 and $16.8. The main query at present revolves around whether this powerful uptrend will carry on.

Weekly outlook

For the last seven days, LINK/BTC has demonstrated strength, moving closer to the $12 mark. To keep up this progression, it’s crucial for LINK to surpass the 2.1 cent (or 2100 sats) hurdle.

Should LINK successfully navigate this obstacle, it could potentially emulate other DeFi initiatives and aim for a price point at 4400 sats. The current surge in weekly liquidity adds credence to the possibility of a bullish trend.

As a crypto investor, I’ve been observing Chainlink [LINK], and it seems like it might have finished a small cycle. There’s a noticeable discrepancy between its price movement and the Relative Strength Index (RSI) on a weekly basis, which suggests a possible change in trend could be on the horizon.

This gap suggests that the ongoing price surge might signal the start of a fresh bullish phase for the Link cryptocurrency. Additionally, the observation of similar trends in numerous other altcoins lends additional credence to this expected uptrend.

Incoming altseason

In simple terms, it appears that the wider market for alternative cryptocurrencies (altcoins) could be following similar trends to those observed in 2017 and 2021. Back then, after a halving event, altcoins experienced significant price surges.

As a researcher examining the cryptocurrency market, I’ve observed that the market capitalization of altcoins is presently consolidating, much like past cycles. Historically, such periods have typically been followed by substantial upward trends.

It seems as though there might be a period of growth for alternative cryptocurrencies, including LINK, which could indicate an upcoming altcoin rally.

Historical correlation

The correlation matrix for Chainlink indicates a significant connection with prominent cryptocurrencies, such as Bitcoin (0.95), Ethereum (0.94), Dogecoin (0.96), and Shiba Inu (0.97).

In simpler terms, if these assets increase in value, it’s probable that Chainlink will follow suit. If the Federal Reserve decides to reduce interest rates around mid-September, which would make the U.S. dollar weaker, this situation might strengthen Chainlink’s price even more.

IntoTheBlock

If the U.S. Dollar weakens, it could potentially boost the value of Chainlink (LINK) and other cryptocurrencies, as there’s a negative correlation of 0.09 between the USD and these digital assets.

As significant resistance points are being examined and a noticeable connection with other top cryptocurrencies, the forecast for Chainlink seems optimistic.

In simpler terms, as we approach a period where alternative cryptocurrencies (altcoins) may see increased value, and if the US Dollar weakens, it could contribute to an ongoing rise in the price of Chainlink (LINK).

2024-08-26 09:11

Weekly outlook

Incoming altseason

Historical correlation

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