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.
Himadri is an active investor in cryptocurrencies and upcoming blockchain technology projects. He has been a part of the digital asset space since 2017 and has held multiple positions as Social Media Manager, Assistant Editor, Sponsored Content Manager, Cryptocurrency Journalist roles in reputed news outlets like NewsBTC, Bitcoinist and CryptoPotato. He has also helped numerous blockchain projects gain prominence through terse and succinct marketing/technical content. Himadri comes with a marketing and engineering background, and has worked with reputed names such as GE Healthcare, Volvo Trucks and Polycom before moving into crypto.
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