Chainlink (LINK) is exhibiting bullish signals on its weekly chart, sparking optimism among investors. The formation of a promising candle near the cycle low suggests a potential price reversal or bottom formation, aligning with the recent tweet from popular crypto analyst Michaël van de Poppe.
“$LINK makes a very decent weekly candle on the cycle low. Again, the bottom will likely be created in May or June. A similar price pattern occurred in previous years, resulting in a 150% rally in the year’s second half. I’m expecting the same,” said Van de Poppe.
Van de Poppe’s accompanying chart offers valuable insight into LINK’s historical performance. The chart highlights key resistance and support levels, with the crucial resistance at 0.0004480 BTC and the cycle low around 0.0002197 BTC acting as significant hurdles for LINK to overcome.
Historically, similar chart patterns have preceded significant rallies for LINK, with gains reaching up to 150% in the latter half of prior years. Notably, the chart indicates a potential trend switch, with LINK forming higher lows and higher highs – a classic technical indicator of a bullish trend reversal.
This shift suggests that Chainlink might be entering a new phase of upward momentum fueled by growing investor confidence. The Relative Strength Index (RSI) on the chart adds another layer of optimism. LINK’s current position in the oversold region historically precedes price increases as buying pressure builds up.
Chainlink Bulls Face Resistance, But Momentum Persists
Over the past few sessions, LINK displayed a notable surge from the $13.00 zone, surpassing the $13.50 and $14.00 resistance levels. Unlike Bitcoin, LINK bulls have been active in the market.
However, LINK faces challenges near the $14.50 and $14.65 levels, consolidating after reaching a high of $14.63. Despite this, LINK remains above the 23.6% Fibonacci retracement level of the upward move from $13.16 to $14.46.
Currently, LINK is trading at $13.70, marking a 1.02% decline in the last 24 hours. Chainlink has consistently declined in the last month’s period, recording a 16.20% decline.
Immediate resistance lies around $14.40 or the triangle zone. A decisive break above $14.65 could trigger a steady climb towards $15.00. Overcoming the next major resistance at $15.20 could pave the way for a potential test of $15.85.
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