• Chainlink’s price has been relatively stagnant over the past few months, slipping to the 22nd place in the top 10 cryptocurrencies by market capitalization.
• A weekly chart reveals a bull divergence with the RSI, indicating that the bears are losing power and the LINK bulls are ready to take control of the market.
• A bearish divergence on the 4-hour chart implies that the momentum of the market is slowing.
Chainlink has had a turbulent few months, with its price slipping to the 22nd spot in the top 10 cryptocurrencies by market capitalization. This period of inactivity has been characterized by a lack of any significant bullish or bearish movements, leaving many investors uncertain of what the future holds for the cryptocurrency.
However, the weekly chart of the cryptocurrency shows an extremely bullish occurrence. The chart reveals that the LINK price has formed a bullish divergence with the RSI on a weekly basis. This occurs when the price falls to new local lows, while the RSI fails to make a new low. This divergence indicates that the bears are slowly losing power and the LINK bulls are ready to take control of the market again.
At the same time, the 4-hour chart is showing a bearish divergence. This divergence is caused by the price making new local highs while the RSI is trending down and making new lower lows. This discrepancy implies that the momentum of the market is slowing and that a further drawdown could be on the horizon.
Despite these short-term concerns, the fundamentals of Chainlink remain strong. In 2023, the cryptocurrency could benefit from the introduction of low-latency pull-based oracles. These oracles would enable users to access data off-chain and add it to the chain as it is needed. This could provide a significant boost to the price of the cryptocurrency, as it could open the door for more decentralized applications and further adoption of the Chainlink network.
Overall, the outlook for Chainlink is positive. The cryptocurrency is showing strong fundamentals and the weekly chart is displaying a bullish divergence. While there could be some short-term drawdowns, the long-term prospects of Chainlink remain strong, and the cryptocurrency could be set to outperform in the months ahead.