• Chainlink (LINK) has had a somewhat mediocre performance in recent months, falling to 22nd place in terms of market capitalization.
• However, a bullish divergence in the weekly chart could signal the end of the prolonged downtrend.
• The short-term market is showing a bearish divergence, suggesting that momentum is slowing.
Chainlink (LINK) has seen a somewhat middling performance in recent months, falling from its former place in the top 10 of all cryptocurrencies by market capitalization to its current rank of 22nd. However, a bullish divergence in the LINK weekly chart could signal the end of the prolonged downtrend.
The weekly chart for LINK shows a bullish divergence, which is demonstrated by the fact that the price of LINK has recently dropped to new local lows, while the RSI is not making a new low. This indicates that the bears are losing their power, and that the LINK bulls are ready to take control of the market again. If this divergence plays out as expected, it could be the start of a major bull run for LINK.
On the other hand, the short-term market is showing a bearish divergence, as the price has been making new local highs while the RSI is trending down and making new lower lows. This shows that the market’s bullish sentiment towards LINK may be waning, and that momentum is slowing.
In order for Chainlink to experience a major bull run, there must be a significant bullish catalyst. Fortunately, 2023 could provide that catalyst with the introduction of low-latency pull-based oracles. This type of oracle will allow users to request data from the chain, instead of the chain regularly pushing out data based on predefined conditions. This would open up a number of new possibilities for LINK, and could be the start of a major bull run.
All in all, the LINK price has had a somewhat lackluster performance in recent months, but the bullish divergence in the weekly chart could signal the start of a major bull run. However, the short-term market is showing a bearish divergence which could indicate that momentum is slowing. If the right conditions are in place, 2023 could be the year that LINK finally takes off.