Chainlink Price Prediction: LINK price shows potential as US CPI tapers inflation

chainlink, vecteezy

In Short

  • Chainlink price hovers above a parallel channel that acted as resistance in 2019.
  • LINK is trading rangebound between two key Fibonacci levels.
  • Invalidation of the bullish outlook is a breach at $4.

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. 

LINKUSDT 1-Week Chart
LINKUSDT 1-Week Chart

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. 

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Tony Montpeirous
Tony Montpeirous
Tony Monpeirous is a full time crypto trader and chart analyst at Coinmash and FXStreet. His style of trading includes, Elliot Wave, Auction Market Theory, and Classic Price Action techniques. When he is not on the screens, Tony enjoys music, cooking, and learning new skills.