Chainlink — the biggest on-chain data (oracle) protocol — is seeing its LINK token shine a bright green light according to this technical indicator.
Chainlink chart analysis shows that the weekly RSI is trending upwards in a bullish divergence while the price continues trading lower — a sign never seen before on the weekly chart for this token. The current weekly RSI of 43.33 suggests that the coin is picking up upwards momentum.
According to Investopedia, “a bullish divergence occurs when the RSI displays an oversold reading followed by a higher low that appears with lower lows in the price.” The trading education website is quite clear as to the meaning of such an indication:
“This may indicate rising bullish momentum, and a break above oversold territory could be used to trigger a new long position.”
As of press time, Chainlink is trading at $6.84 after seeing a price increase of nearly 7% over the last 24 hours. The bullish momentum may propel LINK’s ascension towards the resistance located in the $9 area.