As Chainlink Breaks $10.6, Could It Reach $16.8? Analysts Comment!

• Chainlink has started off with strong momentum.
• Historical correlation and upcoming alternate season to stimulate LINK’s bullish trajectory.

chain link [LINK] It recently broke through the crucial resistance level at $10.6 on the 4-hours time frame, posting an impressive return on investment of 18.58%.

This breakout was marked by strong momentum, with no immediate retest, indicating potential strength in price action.

Source: Ola Wealth/X

However, there are still challenges to the medium-term downtrend that has been in place since March. The next important resistance levels to watch are at $13.1 and $16.8. The main question now is whether this strong rally will continue.

Weekly forecast

Over the past week, LINK/BTC has shown resilience, pushing the price towards the $12 level. However, to maintain this momentum, LINK needs to break the 2100 satoshi level.

If LINK can clear this hurdle, it may start following other DeFi projects and targeting the 4400 satoshi level. The recent weekly liquidity wave also supports the possibility of an upward move.

Source: TradingView

chain link [LINK] It appears to have completed a mini-cycle, with a clear weekly divergence between price action and the RSI.

This divergence suggests that the current upward move could mark the beginning of a new bullish wave for LINK. The fact that many altcoins are showing similar patterns adds further confidence to this expected bullish trend.

Source: TradingView

Next alternate season

The broader altcoin market is showing signs of repeating patterns seen in 2017 and 2021, with altcoins rallying strongly after the halving.

The market cap of altcoins is currently in a consolidation phase, similar to previous cycles, which often preceded significant rallies.

Source: TradingView

This suggests that an altcoin season may be on the horizon, which could benefit LINK along with other altcoins.

Historical connection

Chainlink’s correlation matrix reveals a strong relationship with major crypto assets: 0.95 with Bitcoin, 0.94 with Ethereum, 0.96 with Dogecoin, and 0.97 with Shiba Inu.

This means that the upward movement of these assets is likely to be reflected in Chainlink. With the Federal Reserve expected to cut interest rates in mid-September, leading to a weaker US dollar, this scenario could further boost Chainlink’s price.

In the mass

Since the US dollar has a negative correlation of 0.09 with Chainlink and other crypto assets, a weaker dollar is likely to be bullish for LINK.

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With key resistance levels being tested and strong correlations with other leading crypto assets, Chainlink’s outlook looks positive.

The upcoming bullish season and potential USD weakness provide additional support for a continued upward trajectory in LINK price.