The ChainLink price is making its move just at the right time. An encouraging decisive breakout is signalling LINK could rally 42% from here.
LINK is trading at $18.82, up $0.40 (+2.3%).
ChainLink has a market cap of just over $8 billion and is ranked as the 15th largest cryptocurrency below Solana and just above 16th placed Polygon.
Finally, I have some positive news to report on the ChainLink price. Thankfully, the descending trend line that has capped the price for the last 6 weeks has finally given way.
Yesterday was the first time LINK has closed above the line that links a series of highs, with the 9th of May all-time top at $54.02. Furthermore, if the price continues to move higher from here, it will go some way to relieve the pressure of an impending bearish signal.
LINK Price projection
The Daily chart shows the 50-day moving average at $27.79 is approaching the 200-day at $26.92. When the 50 crosses below the 200, this is known as a death-cross and typically leads to more selling. However, this is a backwards-looking indicator, and markets are a better gauge of what’s to follow.
Moreover, the 23rd of May low at $14.95, and the 22nd of June, $14.37 low, have formed a bullish double-bottom chart pattern.
This further supports the bullish outlook for the ChainLink price.
On a closing confirmation above the trend line today, I would expect LINK to test the 200 DMA at $26.90. This lines up perfectly with the horizontal resistance offered by the 15th of June high at $27.06. Therefore, this looks like a logical first port of call on a confirmed breakout.
Nonetheless, the bullish outlook only remains valid as long as the price closes above the trend line at $17.40. If LINK fails to maintain this level, it may well trade back to the the double-bottom support.
ChainLink price chart (Daily)
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