Chainlink (LINK) Surges Ahead of Staking v0.2 Release
Discover Chainlink's (LINK) impressive surge ahead of Staking v0.2 release, with insights on MACD signals and potential for continued bullish momentum.
Chainlink (LINK) has witnessed a rapid price surge since breaking out from a long-standing horizontal resistance zone that had persisted for over 500 days. While the current outlook is bullish, it suggests the price may have reached a local peak and could experience a short-term correction before continuing its upward trajectory.
Chart by TradingView
Breaking Free from a Prolonged Range
A closer examination of the weekly timeframe reveals that LINK's price saw substantial gains in October. The uptrend gained momentum after breaching the $9 horizontal resistance, resulting in four consecutive bullish weekly candlesticks.
Remarkably, this resistance zone had remained intact for an impressive 525 days. The rally culminated with LINK hitting a peak of $16.60 last week, achieving a remarkable 130% price increase within just 28 days.
Analysts expressed strong optimism about LINK's future performance, likening it to a decentralized version of an AWS platform, emphasizing its utility and fundamentals.
Chainlink's team recently revealed that 70 projects have joined the build program, affording them enhanced access to Chainlink services and technical support. Additionally, eight ecosystems have been incorporated into the Chainlink Scale program, designed to accelerate chain innovation.
Lastly, Chainlink Staking v0.2 is slated to launch on November 28, further adding to the project's momentum.
When Can We Expect the Uptrend to Resume?
One indicator that tends to work well in predicting LINK's movements lately has been the Moving Average Convergence Divergence (MACD). The MACD works both as a momentum and trend-following indicator.
The MACD sends a buy signal when the histogram turns green and a sell signal when the histogram turns red. So for LINK to reach its next resistance at $35 we will need the MACD to send a buy signal, and for the price to make a new Yearly High. During the last bull run in 2020, LINK was one of the first tokens to experience a very strong bull run; history may repeat itself soon.
