Chainlink (LINK) Price Analysis: Can LINK Continue its Rally Towards $20 After Breaking Long-Term Range?

Chainlink (LINK) Price Analysis: Can LINK Continue its Rally Towards $20 After Breaking Long-Term Range?

Crypto News – The Chainlink (LINK) cryptocurrency experienced a slight decline in price following its yearly high of $16.60, which was reached on November 11. However, there are signs of a potential resurgence as of November 14. The question now arises: can LINK maintain its upward trajectory towards the $20 mark?

Breaking Out of a Long-Term Range

Analyzing the weekly timeframe, it becomes evident that LINK’s price exhibited rapid growth throughout October. This surge gained momentum once the price breached the long-standing horizontal resistance at $9, resulting in four consecutive bullish weekly candlesticks.

Remarkably, this resistance area had persisted for a staggering 525 days before the breakout. The price surge reached its peak at $16.60 last week, marking a remarkable 130% increase in just 28 days. Cryptocurrency trader CryptoBusy observed this significant breakout from the long-term range, emphasizing the potential for substantial price movement when a coin consolidates for an extended period.

Fundamentals and Utility Strength

Crypto Cobrex is optimistic about LINK’s long-term performance due to its robust fundamentals and utility. He likens Chainlink to a decentralized counterpart of an AWS (Amazon Web Services) platform. In terms of data-related capabilities, Chainlink offers features like Data Streams, Data Feeds, and Proof of Reserve. It also provides computing functionalities such as Functions, Automation, and VRF (Verifiable Random Function). In the realm of cross-chain connectivity, Chainlink has introduced the CCIP (Cross-Chain Interoperability Protocol).

Chainlink’s Growing Ecosystem

The Chainlink team recently announced that 70 projects have joined their build program. These projects benefit from enhanced access to Chainlink services and technical support. Additionally, eight ecosystems are enrolled in the Chainlink Scale program, which facilitates the acceleration of chain innovation. Furthermore, Chainlink Staking v0.2 is set to launch on November 28, adding to the platform’s ecosystem growth.

LINK Price Prediction

To forecast LINK’s price movement, technical analysts utilize the Elliott Wave theory, which identifies recurring long-term price patterns and investor psychology.

Based on the daily timeframe analysis, LINK appears to be in wave four of a five-wave upward movement. Wave four is typically a corrective phase, aimed at correcting an extended wave three, which, in this case, was over 2.61 times the length of wave one.

If this analysis holds, LINK is expected to complete wave four near the 0.382 Fib retracement support level, which sits at $12.50. This potential bottom coincides with the launch of Chainlink staking. While the precise top target will become clearer once wave four concludes, an initial target is set at the long-term resistance of $19.50. This target represents a 40% increase from the current LINK price and a 55% gain from the $12.50 support level.

However, it’s essential to acknowledge that a failure to bounce at the $12.50 support level could lead to a 30% drop towards the 0.618 Fib support, situated at $10. It’s worth noting that even in this scenario, the overall bullish outlook remains intact, with the count only invalidated if LINK falls below the wave one high at $8.45.

In conclusion, Chainlink’s recent performance and strong fundamentals have garnered attention, leading to optimistic price predictions. However, the cryptocurrency market is known for its volatility, and investors should exercise caution and conduct thorough research before making any investment decisions.