A closely watched crypto strategist believes that 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 we have crossed recently. Chainlink breaks the SMA of 500 days. Moving above these longer-term SMAs is usually a sign that a macro shift is taking place.”
With Chainlink issuing a potential reversal signal, Svenson says he sees a scenario where the Ethereum (ETH)-based altcoin maintains its short-term bullish momentum and recovers toward its macro resistance. However, the analyst notes that LINK will likely need more time before entering bull territory.
“And this macro downside resistance line currently sits at around $10.90. So the area of interest ranges from about $10.13 to about $11 to make it an integer.
In an escape scenario you’re looking for something along these lines, a test here [at $11].
It’s very likely that if we get this high, which is the higher range here on a breakout, if we actually cross resistance and break here, it’s likely that Chainlink will eventually come back down to retest lower levels before it breaks out at a later date.”
At the time of writing, LINK is worth $7.32, down over 2% in the past 24 hours.
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Generated image: Midjourney