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.
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.
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.