Chainlink’s crypto is on the verge of reaching new price highs for the year as we can see in the LINK news today. Chainlink led the headlines multiple times this year after making a lot of partnerships that solidified the utility of the LINK token.
The announcement of partnerships and companies that use the technology played a very important role in the price of the altcoin. The oracle token increased by more than 200% between the first three months of 2020 to reach an all-time high of $5 but as the Coronavirus pandemic started causing trouble on the global financial market, LINK crashed all the way to $1.5. The downturn didn’t stop the retail investors from getting their hands on this cryptocurrency. The demand for Chainlink increased which allowed the price to recover shortly after the crash. Not, analysts believe that LINK could be preparing for an all-time high.
Michael van de Poppe explained that Chainlink’s crypto is sitting on a pivotal point currently which will determine the next price trend. The decentralized oracle token is trading in a narrow range that is defined by the $3.40 support and the $3.75 resistance level. If the buying pressure increases for Link, it will allow breaking the resistance level which could be followed by the $4.10 level. If the demand rises, van de Poppe believes that LINK will test the next resistance level between $4.60 and $4.80. The analyst affirmed that the downtrend impulse below the $3.40 level could endanger the bullish outlook.
If this happens, the sell orders behind LINK could pile up which will eventually push the price down to the next demand wall of $2.90. IntoTheBlock had made an ‘’In/OUT model of the money around price’’ which adds credence to the importance of the analysis and the $3.40 support. The fundamental index estimated that the bulls could face stronger resistance around $3.78. On the flip side, the IOMAP shows that there is another important level around $3.45 since more than 4,230 addresses are holding 17 million LINK at this price level. A massive supply barrier such as this one could make it extremely hard for the bears to take control over the LINK price action.
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