- The Chainlink price saw a significant upward momentum until January 10th and has been experiencing a retracement since then. However, according to AMBCrypto analysts, the LINK price promises an increase of 20% and beyond in the coming period, and the retracement phase could end.
At the time of this writing, Chainlink is trading at $ 15.89 and bouncing off support levels.
LINK exited the ascending parallel channel and tries to enter this channel again. After two unsuccessful attempts, the price could finally rise as the EMAs and the 0.382 Fibonacci level sit at the intersection of short, medium and long term support. Support is therefore strong and LINK is likely to come back from this support.
What do technical indicators say?
In addition, the MACD indicator showed a bullish trend pointing to pressure from buyers. The RSI indicator also showed that the Chainlink price has room to grow.
However, the OBV indicator showed the possibility of a short-term downside. Given the strong support below the price, the 0.382 Fibonacci level will likely jump higher from $ 15.19 after this drop. This surge has the potential to enter the parallel channel and also override the sell signal offered by the SuperTrend indicator.
Therefore, in the long run, LINK is expected to climb to the top of the channel or towards the midline. A rise to the latter means a 19% increase, but an increase to the top of the channel’s trend line means a price increase of at least 25% to 30%. All in all, Chainlink could be poised to increase by at least 10% to 30% over the medium to long term.