Chainlink’s cryptocurrency token, LINK, has recently seen a significant resurgence, breaking past the $20 mark thanks to robust support at $18. This resurgence has been marked by increased trading volume and heightened network activity. The rally was primarily driven by a breakthrough in the resistance level, commonly referred to as the ‘neckline’, within a bullish chart pattern known as the ‘cup and handle’.
LINK’s Market Uptrend Following Technical Breakout
From late January, LINK began ascending from a low of $13.50, signaling a turnaround that resulted in a 46.7% gain over three weeks, hitting the $20 milestone for the first time in two years. This surge is attributed to a successful push past the $17.5 resistance, confirming the ‘cup and handle’ pattern—a bullish indicator suggesting an end to a downtrend and an entry opportunity for investors.
EkponoAkwaowo, a content partner at Intotheblock, emphasized LINK’s 11% price surge, which achieved a 22-month peak, coinciding with increased network activity. This includes more active wallet addresses and the creation of new ones, signaling broader engagement on the Chainlink network.
Substantial transactions by ‘whales,’ or large stakeholders, reflect intense interest in LINK, hinting at a possible further 50% price increase, targeting $30. However, failure to maintain levels above $20.81 could see a retraction to the $17-$18 range.
The future trajectory of LINK’s price, however, is closely tied to Bitcoin‘s market behavior, as fluctuations in the primary cryptocurrency are likely to influence LINK.
Analysts Give Insight on LINK’s Technical Momentum
Technical indicators like the Bollinger Bands suggest a bullish run for LINK, with buyer dominance. However, the high reading of the Average Directional Index warns of a possible minor pullback, tempering the rapid ascent, and indicating a potential for a short-term correction within the broader upward trend.