After consolidating above $20 for a prolonged period of time, Chainlink has finally managed to breach the $30-price level, checking off another valuation target for the year 2021. In fact, in the year 2021 alone, Chainlink has surged by close to 172%, with the crypto recording YTD returns of 132%, at press time.
In the last six hours alone, LINK climbed by over 8% on the price charts.
Source: LINK/USD on TradingView
LINK first gained significant traction in mid-2020, with the crypto-asset becoming one of the cryptos leading the altcoin season soon after.
Interestingly, the writing was already on the wall since Chainlink’s price only recently successfully breached an ascending channel on the price charts. In fact, the resistance just above $26 was tested four times before the eventual rally to $30, with the pattern briefly broken in the previous instance as well.
At the time of writing, market indicators were bullish for LINK. However, a possible correction may also take place, pulling the crypto’s value down to the support at $24.
One of the major advantages of supporting Chainlink’s hike is the consistent development from a technological perspective. Just a few days back, Kraken integrated a Chainlink node to bring spot price data to DeFi. Chainlink’s price reference data is one of the most widely-used decentralized oracle solutions in the DeFi space, and it remains credible to the fact its activity is also up by 60% since the start of the year.
Chainlink still being in price discovery mode helps the crypto-asset attain consistent bullish tops in the present market. Additionally, LINK’s Daily Active Addresses also registered a record high recently, although a divergence was identified on the chart as well. Its Network Growth too climbed to an ATH level recently.
LINK’s price surges have been supported by a host of other metrics too. Chainlink’s Token Circulation Level, for instance, is flashing bullish signals for the 13th straight month, according to Santiment.
Trading at such a high range, a section of the market’s investors will always be willing to sell in order to cap in some profits. Hence, the hodling sentiment will play a key role in the future for Chainlink.
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