Chainlink (LINK) – Bulls rekindling the medium-term positive bearing
Posted on Monday, November 7 2022 at 9:28 pm GMT+0000
In an attempt to rekindle the short-term uptrend, Chainlink (LINK) weighed decisively on the lower line of the regression channel pulled from the 10th of October low and instantly surpassed the 20- and 55-period exponential moving averages.
As regards the market trend, the positively aligned 20- and 55-period exponential moving averages are endorsing the upward trajectory from October lows.
Moreover, the momentum oscillators are conveying that the bullish impetus has jump started. The Stochastic has shot exponentially from its oversold territory while the RSI is edging back towards the positive territory following a remarkable retreat over the last couple of sessions.
As things stand, the bulls are expected to soon rechallenge the upper-line of the channel, then the Saturday’s high of 9.100, while aiming to underpin the current structure. A sustainable move above the last intraday top will see an extension towards the 161.8% Fibonacci extension level of the recent down-leg at 9.83. Further north, the rally will likely accelerate towards the 227.2% Fibonacci level at 10.61.
Otherwise, if sellers resurface and push the price back below the 20-period exponential moving average, they will target the most recent bottom at 7.91, residing near the channel lower line and the 55-period exponential moving averages. Any violation here will bring the 2nd of November bottom of 7.34 immediately under the radar.
In brief, Chainlink is currently exhibiting a bullish appetite for the coming sessions. A significant move above 9.10 is expected to release fresh buying, while a drop below 7.91 will confirm a steep retracement.
