A closely followed crypto strategist believes that the decentralized oracle network Chainlink (LINK) is poised for continued rallies.
In a new video, analyst Kevin Svenson tells his 70,700 YouTube subscribers that LINK may be on the verge of reversing its multi-year downtrend after moving above a key long-term indicator.
“We also have the 500-day SMA (simple moving average). This is the longest moving average that we have just recently crossed above. Chainlink is breaking the 500-day SMA. Getting above these longer-term SMAs is usually a sign of a macro shift taking place.”
With Chainlink flashing a potential reversal signal, Svenson says that he sees a scenario where the Ethereum (ETH)-based altcoin sustains its bullish momentum in the short term and rallies toward its macro resistance. However, the analyst notes that LINK likely needs more time before entering bull territory.
“And this macro downward slipping resistance line comes in at about $10.90 right now. So the area of interest comes in from about $10.13 to about $11 to give it a whole number.
In a breakout scenario, you’re looking for something along these lines, a test up here [at $11].
It’s very likely that if we do get that high, which is the higher end of the range here on a breakout, if we do actually exceed the resistance and break here, it’s likely that Chainlink is going to end up coming back down to retest lower levels before breaking out at a later date.”
At time of writing, LINK is worth $7.32, down over 2% in the last 24 hours.
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