Chainlink price could set up a surge back to double-digit price territory. Following the US Consumer Price Index’s release data coming in lower than October’s, risk assets like Chainlink could get a bid.
Chainlink price has potential.
Chainlink price is worth keeping an eye on as the market nears closer to Christmas and a much anticipated Santa Rally. On December 13, the LINK price rests directly above a parallel trend channel. The trend channel was LINK’s first encounter with a bearish force in 2019 when the oracle blockchain token traded at $0.60. Chainlink’s maintenance above the significant barrier is optimistic, which promotes the idea that one more bullrun rally is still possible.
Chainlink price currently trades at $6.86. A Fibonacci Retracement tool surrounding the steepest rally following the pandemic lows shows the LINK price sitting perfectly between the 50% and 61.8% Fib levels. The November 14 sell-off was the third attempt to pierce through the “golden pocket” 61.8% Fib level at $5.48, and the bulls successfully sustained support.
On December 12 the United States Consumer Price Index was released with a reading of 7.1%, nearly 9% lower than the month prior at 7.7%. The CPI’s index suggests that inflation is waning, which has prompted many investors to consider picking up risk-on assets such as Chainlink’s price.
If the market is genuinely bullish and ready to challenge inflation, an additional attempt to breach the 61.8% Fib level will not be necessary. A breach above the 50% Fib level at $8.43 (which has been rejected on three occasions throughout 2022) should be the catalyst for the next Chainlink bullrun. Key bullish target zones would be the $12 liquidity level and the Weekly Order Block near $22. The LINK price could rise by nearly 200% as a result of the bullish scenario.
On the contrary, a breach of the $5.50 could induce an additional downswing towards the $4.00 price level. A breach of the $4.00 swing high established in 2019 would eradicate LINK’s bullish macro bias.