Can Chainlink (LINK), an acclaimed crypto asset, defy expectations and reach $8.5 resistance level? Given its recent performance, this isn’t an impossible scenario. In fact, LINK’s behavior differs from most other assets – when it moves to exchanges, it often experiences an initial price increase. This intriguing trend was highlighted by Santiment, a reputable market analytics tool.
A Remarkable Performance
Chainlink has been making waves in the cryptocurrency market, with its price surging by over 23% in just two weeks. This increase has been attributed to the movement of the exchange supply to cold wallets. On September 25, LINK hit a record high of $7.30. Interestingly, this occurred despite LINK brushing the upper Bollinger band, a move that usually suggests an asset is overbought and due for a price correction.
Fluctuating Supply and Trading Volume
On September 14, the supply of LINK peaked at a significant 17.2%, marking the highest point for 2023. However, within a mere 10 days, this spike decreased to 16.4%. At present, the supply sits at around 15%, and despite this decrease, LINK’s price has continued to rise, increasing by 9% over the past week. In contrast, LINK’s trading volume experienced a 13.7% decrease, dropping to $200,023,810. Yet, this didn’t prevent the market cap from rising by 1.28% to $4,020,594,959, securing LINK the 19th spot in the market cap ranking.
Chart Analysis: A Steady Ascent
Observing the LINK/USD 1-Week Chart, we can identify a pattern of higher highs for the first three days of the week, followed by a brief dip as LINK made lower highs. However, a recovery was quick to follow, with LINK resuming its pattern of higher highs. This pattern was momentarily disrupted during the second half of the sixth day when LINK experienced some price loss. Despite this, LINK managed to reach its highest price of $7.30.
Looking at the LINK/USDT 1-Day Chart, it’s evident that LINK is on an upward trajectory. Despite hugging the upper band, LINK continues to rise, indicating strong buying pressure. However, given the typical behavior of cryptocurrencies, there’s a possibility that LINK could bounce off the upper band and move towards the lower band. If the market perceives LINK as overbought, it may seek support at $5.83. If this support fails to hold due to strong bearish pressure, LINK could find support at the $5.05 level. Conversely, if the influx of buyers continues and LINK’s price keeps rising, Chainlink could potentially reach $8.5 resistance level.
Given the increased trading activity at the current price, the odds of LINK climbing further are increasing. Therefore, traders may need to exercise caution when trading LINK. To stay updated with the latest market trends and make informed trading decisions, consider using a reliable application like cryptoview.io.
