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.
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.
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