Chainlink’s LINK One Break Away from Pumping 15% — Here’s Why

Jaipur (CoinChapter.com) — Chainlink’s native token LINK looks primed for a bullish breakout. A solid chart setup and a slew of technical updates favor the LINK/USD exchange rate. Given the outlook, the par stands to rally up by 15% if the setup plays out as projected. But will it? Let’s examine.

The 20-Day EMA

Overwhelmed by large-scale sell orders, Chainlink’s LINK token experienced a massive drawdown below the $15 price level. Courtesy of the recent crypto market crash. But now, the scenario has undergone a 180-degree reversal.

The current technical setup of LINK against the US dollar looks supremely bullish. The LINK/USD rate is testing its 20-day exponential moving average (green indicator) for a breakout rally.

Read more: Speculators Expect A Higher LINK Price Despite Chainlink’s Value Remaining Unchanged

If a green candle confirms the breakout, bulls would likely bat for the LINK/USD pair to sync up near the $36.93 resistance (which coincides with the blue 50-day simple moving average indicator). Bulls might also attempt to push past the said resistance. In that case, LINK could attain the $45 price level against the dollar.

But if there’s still more steam left, buyers might go all out in sending the top blockchain oracle token to the $54.34 resistance level, an all-time high.

Solid Chainlink Support Confluence

The foundation keeping the bullish setup in place is the 200-day simple moving average indicator. The orange line is well-positioned to support LINK from facing massive losses.

The MACD (Moving Average Convergence Divergence) indicator has printed a bullish crossover. Basically, when this happens, out of the cross-intersecting green and red lines, the green one takes the lead. Also, after bottoming near 41, RSI (Relative Strength Indicator) is looking to chart a course up higher, indicating rising prices.

Read more: CipherTrace Launches DeFi Compli Using Chainlink

But on the flip side, if bears take over, LINK could pull back from the 20-day EMA, freefall towards the 200-day SMA. It will be a trip down memory back to the May 19 crash levels.

Apart from the above technical setup, a few fundamental factors favor the LINK/USD pair’s bullish trajectory. As per Chainlink’s Twitter feed, the blockchain oracle project is on a massive adoption spree. Agryo, an agri-finance ecosystem built on Hedera Hashgraph, will launch a Chainlink node to bring agricultural data on the blockchain.

Also, Chainlink price feeds are now a part of Avalanche’s test blockchain network.

Please leave this field empty

Subscribe Today
for our Weekly Newsletter

Free Weekly Crypto News without the spam.

Check your inbox or spam folder to confirm your subscription.