This week, the chainlink price increased by 27% following a significant monthly reduction. Relative Strength Index data for LINK price exhibits bearish divergence, while the Volume Indicator lacks signs of buyer activity.
Chainlink assumes leadership
The bearish potential would be invalidated with a breakthrough over $7.50.This week, the chainlink price (1) has shown significant retaliatory indications. The price bids close to a previously breached support zone following a robust comeback rise. Certain thresholds have been defined to determine whether or not LINK has more fuel in the tank. Going into the final trading weekend of November, it would be wise to check the chainlink pricing carefully. The oracle-based blockchain token has recouped 27% of its value since November 25. market value after a steady downward trend the whole month.
Chainlink is $6.84, barely under the 21-day simple moving average (SMA). Without a retest, the 8-day EMA (2) was broken, which sparked a surge into the SMA, where the price is currently consolidating. A break of the SMA might start a 40% increase in the uptrend that would take the price to the $9.48 monthly high. According to the Volume, Indicator, bulls may find it difficult to achieve this, as few transactions have occurred during the 27% upswing advance.
What Investors should be excited for
The current price and the spike on Thursday, November 10, demonstrate a bearish divergence in the Relative Strength Index. Considering this and the fact that the candles are becoming smaller and smaller as the rally continues, A reasonable likelihood exists for a drop into the 8-day exponential moving average at $6.20. A sweep-the-lows event is targeting $5.52, which will come with a significant probability if the signal fails to hold as support.
If the bulls can take down the daily candle's peak, which earlier in the month broke through the 21-day SMA at $7.50, the bearish view might be invalidated. The likelihood that a 40% rally for the monthly high at $9.48 is beginning would increase with a break of $7.50.