Recent trends for Chainlink For the first time in over two months, Chainlink (LINK) broke through the EMA ribbons following a recent inverse head and shoulder breakout.

Although the long-term trend was still bearish, LINK bulls managed to put together a run of bullish engulfing candlesticks.

Is this enough to halt the downward trend? Market sentiment and technical analysis can be used to help us determine that.

Having hit a 22-month low on May 12th, the selling pressure on the stock has finally subsided. Finally, the inverse head and shoulder pattern worked in favor of bulls after a three-week consolidation near $6.5

To top it all off, the two-month resistance trendline was knocked out of the park, turning into solid support. As a result, after a long period of time, the Supertrend turned green.

Given the recent bullish hammer candlestick, a sustained recovery beyond the 55 EMA may pave the way for additional recovery in the coming times. Close above the EMA ribbons would signal a goal of $10-$11.

It’s possible that the rebound will be slowed down by reversals from the 55-period moving average.

What is the rationale trends for Chainlink?

After crossing the equilibrium line, the RSI showed a robust rebound. Despite recent advances, it has not yet crossed the threshold of overbought. Bulls could still clinch in a short-term rally, however.

Over the last two weeks, the MACD line has grown steadily. The bullish trend would be confirmed if the price closed above zero. In spite of this, the CMF’s reversal from its long-term resistance could delay the immediate rebound prospect.

Staking support and a large Avalanche tie-up helped drive up the price of Chainlink (LINK), the native token on its own network.

Avalanche support has been noticed to increase

With Chainlink’s integration with the Avalanche blockchain, LINK has seen tremendous growth in the last 24 hours.

On Thursday, Chainlink’s Keepers and Variable Random Functions (VRF) were made available on the Avalanche main network.

Developers should expect higher uptime guarantees and increased smart contract security as a result of the new functionalities. It was roughly a year ago when Chainlink price feeds were natively integrated into Avalanche.

Chainlink’s user service costs rise as the number of blockchains on which it is deployed expands. Even in light of efforts to incentivize staking, this makes LINK appear more appealing.

Chainlink 2.0 will allow staking in the cryptocurrency

The initial phase in Chainlink’s improvement will be to encourage staking using LINK. More community engagement and increased security are two of the blockchain’s goals for its oracle networks.

Sustainable rewards for long-term customers will be another major focus of this improvement. LINK stakes will be rewarded through the usage of emission fees and user service fees on the blockchain.

After the news, LINK surged by 12 percent and has been steadily rising ever then. In the face of a general market decline, it has been the top-performing top-30 cryptocurrency this week.

Is it too late to buy chainlink in 2022?

There are numerous signs that favor the buyers; therefore, any closure above the EMA ribbons could lead to a test of 61.8 percent Fibonacci. Threats to the CMF could cause reversals, which would postpone the resurrection process.

In addition to the technical factors, a comprehensive understanding of market sentiment is necessary in order to make a lucrative move.