Chainlink (LINK/USDT) Gearing up for More Upside Gains
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Chainlink Long-term Analysis: Bullish
The current market sentiment for Chainlink against the Tether appears bullish. The recent candlestick shot slightly above the Guppy Multiple Moving Averages (GMMA), reflecting strong price action.
LINK/USDT has seen significant upside price movement since mid-September, likely fueled by increasing trading volume and some positive factors in the crypto space.
In recent weeks, LINK/USDT has surged strongly out of the consolidation phase and is breaking above the upper band. Recently, the pair has experienced heightened volatility with an increased trading volume of 49.94 million, showing a strong bullish momentum.
Currently, Chainlink trades at $17.38 with a 26.12% increase in trade over the previous session. However, in the near term, LINK/USDT targets the $18.39 level provided the current momentum is sustained, but the Stochastic oscillator suggests a pullback might be on the way.
Technical Indicators
Major Resistance Levels: $18.39, $20.00, and $23.50
Major Support Levels: $15.79, 13.75, and $12.05
Chainlink Technical Analysis
The analysis of Chainlink against the Tether on a weekly timeframe shows the pair has experienced a significant uptrend, with the aim of achieving the current resistance levels. Though the current price activity above the upper band at $15.79 indicates a strong buying interest, this kind of breakout may be followed by a correction before further upside moves.
Therefore, traders may expect the price to pause at the $17.00 level before another upside movement towards $20.00, as the pair looks overbought. Conversely, a fall in price towards $15.79 with diminishing volume may lead to the pair testing lower support levels.
On the other hand, the Stochastic RSI indicates the pair operates in the overbought region, with the lines reading at 96.86 and 84.43, respectively. To this end, the oscillator suggests a cooling-off period is on the horizon. In the near term, the price may suspend around $15.79 before resuming the uptrend.
LINK/USDT Analysis: Expectations
LINK/USDT on the daily timeframe shows the pair has been on an uptrend with a slight uptick above the upper band at $17.39 and 3.25 million traded volumes for the day. However, the recent price activity around the upper Bollinger band suggests overextension with the possibility of a pullback soon. The middle band, positioned at $14.26, may serve as the next support level if a pullback occurs.
On the other hand, the Stochastic oscillator indicates the pair is near an overbought zone, and the possibility of breaking above the $20.00 depends on whether the current increase in volume is sustained. Though the overall market outlook looks bullish, for a continued uptrend, trading volume must significantly increase beyond 3.25 million.
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