The intense Chainlink rally helped the price increase by 180 percent since the mid-March lows and surpassed top assets such as Bitcoin and Ethereum as we are reading in the Chainlink news below.
The demand for the LINK token increased after the US-based venture capital company backed its use to start offering collateral in order to dwindle the stablecoin DAI. LINK broke a few crucial resistance areas and it is looking to extend the uptrend but there will be risks on the road. Chainlink’s LINK token rebounded by more than 180 percent thanks to the intense Chainlink rally.
The LINK-to-Dollar exchange rate reached $3.84 on Saturday as one of the venture firms that back it- PArafiCapital proposed to collateralize the stabelcoin DAI using the Link cryptocurrency. The company noted that LINK brings a huge market cap and an increased appetite for speculation which could help the DAI in maintaining the US to dollar peg. ParaFi noted:
“For context, lending protocol Aave has seen close to $20MM in LINK 2 supplied as collateral since launching in mid-Januar. LINK is valued at over $1 billion and is also one of the most liquid ERC-20 tokens available. The token is relatively decentralized with no known “kill-switch” or blacklisting capabilities.”
The speculation brought even more users to the Chainlink network. The number of LINK wallets surged last week at an average of 1,400 per day and the analysts predict there will be an uptrend in the LINK prices. The predictions will possibly be accurate in the near term. The Link-to-dollar exchange rate jumped 6 percent on Monday and showed the willingness of the traders to keep the prices above the crucial support levels. The move upwards will bring the pair up by more than 100 percent on a year-to-date timeframe.
The gains for Link led the price to a long-term moving average and the charts show that the price could start behaving within its psychological support which is another place for accumulation. This will increase the possibility of the cryptocurrency to retest the $4.10 level but an extended move could move the level to an upside target to the $4.81. The Chainlink price is rising but there is some risk of profit-taking. Once the MakerDAO hype damps, the traders could start offloading the LINK positions and will move into fiat or Bitcoin.
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Stefan has been writing articles for DCForecasts since 2016 in-house full time. As one of our main cryptocurrency writers, he focuses on covering the latest cryptocurrency news, technical charts, price analyses of coins and press releases. When he is not exploring and covering the latest topics in crypto, you can find Stefan playing basketball, tennis or cycling.
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