Chainlink nears an all-time high level leaving the price 3% away from it as the bulls are preparing to maintain the current momentum. Following the latest Chainlink news, we take a closer look at the price analysis.
Chainlink nears an all-time high as the smart contract blockchain network after the altcoin broke out today and notched an 11% gain at the time of writing. The altcoin hit a record high of $5.10 in July 2019 before crashing to $1.35 when the Black Thursday occurred on March 12. Over the past two weeks, Link gained 33% so if the price pushes above the previous all-time high, there will be more room for price discovery. Three factors are likely triggering the upsurge in Link which are the bullish technical structure, the recent partnership with the China national blockchain service network, and the bullish ETH price action.
Over the past 48 hours, ETH’s price increased by nearly 9% from $227 to $244 while the overnight rally led Tezos and Link to rebound following a week of sideways trading. Both XTZ and LINK rallied as well in the past while most cryptocurrencies were down by 50% to $95% from their highs in the same period. According to the latest data from CoinMarketCap, LINK is now only 3.37% away from the all-time high. The majority of the stable coins didn’t decline more than 10% from their record highs while top cryptocurrencies such as Ether and Bitcoin remain away from their ALT.
The price discovery element is usually used when the price of the asset goes over its record peak. This means that once an asset enters the phase, it is hard to determine where the next top will happen and will open up for further speculation. While the price of a cryptocurrency reaches a record high, it will display huge volatility as the sellers will try to avoid price discovery and the buyers will try to push away. Michael van De Poppe said that if LINK remains above $2.40, there is a huge chance of it set a new all-time high. Speaking with Cointelegraph he said:
“LINK is still trading in a very bullish construction. The region between $4.70-$5.00 has been acting as resistance several times, which makes it likely to see a breakthrough in this case. A crucial area to hold is the $4.20-$4.30 level for support. If that remains as support, I’m expecting a new all-time high for LINK. I wouldn’t be surprised with a rally towards the $6.50-$7.00 region from here.”
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