Can Chainlink (LINK) Achieve a New Annual Peak?
Chainlink (LINK) has witnessed a substantial surge in the past two weeks and is now approaching the prospect of a new yearly high.
Both weekly and daily timeframe analyses exhibit bullish tendencies, which is supported by the price action MFI.
How Far Can Chainlink's Uptrend Continue?
Looking at the weekly technical analysis, LINK's price has been on the rise since June, recovering from a low of $4.75.
This ascent resulted in the reclamation of the $5.80 horizontal support zone, which has been held since April 2022.
Chart by TradingView
Moreover, this upward trajectory was accompanied by a bullish divergence in the MFI. The Money Flow Index (MFI) is a momentum indicator for traders to gauge market conditions, identify overbought or oversold levels, and inform buy or sell decisions.
Readings above 50 coupled with an upward trend indicate a bullish trend, while readings below 50 suggest the opposite. A bullish divergence arises when the MFI shows a lower value while the price is higher.
The daily timeframe paints a bullish picture. Additionally, the MFI is holding strongly above 50.
If the uptrend continues, LINK may reach the yearly high of around $8.80, which is 20% higher than the current price. However, given that the overall market is not bullish whatsoever, at this moment it is unlikely to make any significant breakthrough.
Looking Ahead: Despite the current trend LINK is unlikely to rise significantly over the yearly high at $8.80. On the other side, if the price starts descending, the $5.80 support level will be the next target to the downside.
