What Does Positive Bump of 11% Indicate For Chainlink?

Vasu Singhal
Vasu Singhal is a management student and a stock market trader. He believes that investment avenues and opportunities are very diversified. Therefore, he has an interest in blockchain technology too. He likes to evaluate best investments available in the financial market with showcasing the required skills.
  • The bulls are back for Chainlink with a huge positive push in the market upfront. 
  • The cryptoasset has now targeted for the crucial price level of $10.00
  • Both LINK/BTC and LINK/ETH are performing significantly positive with an overall gain of 7.77% and 6.31% respectively. 

Chainlink outperformed on Friday’s market session with a significant gain of 10.52% bringing the CMP to $9.53. It is no doubt that the crypto asset will now be targeting the price mark of $10.00. 

Source: Coinmarketcap

The intraday chart highlights the gradual positive momentum build by the digital asset in the market. The market capitalization stands at $3,334,326,412 with the 24-hour volume traded of $1,450,809,805. The downtrend faced by chainlink has finally come to an end which emerged from the starting of this month. Now, the real talking point is what has driven this huge positive move for the coin? 

On the technical part, the crypto asset touched the major support level of $8.50 which avoided any further downfall. However, a positive push of 10.00% provided by a support level can be sometimes vague. 

Looking at the fundamental aspects, Fetch.ai, a Cambridge-based artificial intelligence company that is currently building a machine learning network for smart infrastructure recently announced its successful mainnet integration with Chainlink. Now it can use chainlink’s market-leading price reference data to allow users to verify the price of assets on-chain while also enhancing security against price manipulation. 

Chainlink’s community is planning to accelerate the launch of DeFi applications by making secure and reliable price feeds that can be available to the developers on-chain. This can help to protect the presence of DeFi coins and its system as currently the majority of DeFi related tokens are taking heavy beatdown in the market. 

Technical Levels are Retreating From the Positive Move

Source: Tradingview

The technical chart lays emphasis on the downtrend faced by chainlink which almost broke down the price levels by 60%. The current positive jump can be noticed in the graph which was halted by the resistance placed at 0.618fib level. Above the price mark of $10.00 lies a great magnitude of unsustainability for the cryptoasset which provided the downfall to the support level of $8.50 on the previous occasion.

RSI levels are taking corrections after showing extreme bullish nature. The levels currently stand at 57.42. 

CCI levels are making corrections too from the overbought region which has put sustainability above the 0.5fib level in doubt. The current level stands at 103.69

Where LINK can be headed? 

A positive breakout above the price level of $10 looks a little hard for the coin as the backing of strong fundamentals is still missing. However, the coin will try to sustain above the price level of $9.00 for capitalizing on this positive move further on. 

RESISTANCE LEVEL: $10.00 & $11.00

SUPPORT LEVEL: $8.50 

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