Chainlink (LINK) – Will likely keep attracting buying interest in the short-term

Chainlink (LINK) – Will likely keep attracting buying interest in the short-term

Posted on Monday, October 17 2022 at 8:51 pm GMT+0000

Chainlink (LINK) painted a higher low and shot aggressively higher during the weekend to erase all of last Friday’s losses. The move confirmed a bullish trend reversal pattern on the four-hour chart.

The expansion of the Bollinger bands is showing that volatility has been restored, while the momentum oscillators are suggesting an increase in the potency of positive forces. The Awesome Oscillator is creeping higher in the positive territory and the KST is rising above its signal and zero lines, both promoting further price advances.

So now, the gates have opened for additional gains, and the buyers are expected to push the price towards the 161.8% Fibonacci extension level of the latest down-leg at 7.53. Stretching past this, they will then advance confidently to the 7.82 – 7.95 resistance area, linking the 227.2% Fibonacci extension and the October 5th top.

On the other hand, if positive pressures wane near the upper-Bollinger band, the price will likely slide to the 20-period simple moving average seen around 7.06. If this proves easy to clear, the spotlight will turn towards last Friday’s bottom at 6.80 overlapping with the lower-Bollinger band. By snapping that key hurdle, the bears could then challenge the October 13th low of 6.31.

All in all, the recent move beyond 7.25 dissolved Chainlink’s short-term negative trend, and buyers seem at the moment eying the Fibonacci golden number.