Coin Edition -
- LINK tapped $13, with technical indicators hinting at a surge to $14.55.
- A retest of $12.22 is possible, but it may not be able to invalidate the rally.
- Chainlink’s CCIP has also been influencing the hike in the token’s price due to the surge in adoption.
For the first time since April 2022, Chainlink (LINK) blasted through the $13 mark. At the time of writing, LINK’s value was $13.22, indicating a 71.76% surge in the last 30 days. On a Year-To-Date (YTD) basis, LINK’s performance observed a tremendous 132.88% increase.
The surge in LINK’s price could be attributed to the renewed interest in the token. This jump in interest was confirmed by the trading volume, which has been on an upward trend for the last few days.
Likewise, whales have not been left out. For instance, a smart money tracking account on X (formerly Twitter), Lookonchain, reported how a certain whale bought $3.81 million worth of LINK. This action surely impacted the buying pressure connected to the token.
A smartmoney bought 312,901 $LINK($3.81M) at an average price of $12.17 in the past 8 hours.This smart money has previously traded 10 tokens with a total profit of more than $3.9M.Made ~$2.15M on $RLB and ~$1.8M on $FLEX. pic.twitter.com/rCfALoczVX— Lookonchain (@lookonchain) November 6, 2023
As per the technical outlook, LINK continued to paint a bullish picture, as indicated by the 4-hour chart. At the time of writing, the support at $11.77 has ensured that bears were not able to break the ascending channel, which has been in place since November 5.
With no resistance appearing on the current pattern, LINK may add an extra 10% increase. But this would only occur if bulls continued to maintain the current buying momentum. Therefore, a potential move to $14.55 is something market players may need to watch out for.
Furthermore, the Relative Strength Index (RSI) was 74.28. Rising above an RSI reading of 70 means that LINK was overbought. Thus, there could be a retracement, and a retest of $12.22 may be possible.
If the retest happens, it may not invalidate the bullish breakout as more buying momentum may appear, leading LINK in the direction of $15. A close look at LINK’s price action showed that it is exhibiting signs of an exponential rally similar to that of 2021, when it rose to $52.25.
LINK/USD 4-Hour Chart (Source: TradingView)
Like the RSI, the Moving Average Convergence Divergence (MACD) remained in the positive region. Additionally, the 12 EMA (blue) was largely above the 26 EMA (orange), indicating bullish momentum for LINK.
As long as bulls keep the $12.22 resistance at bay, LINK has the potential to continue moving upward. At the same time, it may be too early to conclude that the value can hit 4x the current price. However, it may not be off the table in the coming months.
Another factor driving the surging interest in Chainlink is the adoption rate because of the utility the project offers. One undeniable feature that has put Chainlink in the spotlight is the Cross Chain Interoperability Protocol (CCIP).
The CCIP allows data sharing and communication between blockchain networks. So, users can send messages and transfer tokens without any hindrance across several blockchains.
The interesting part is that the CCIP has not just been adopted in the decentralized finance (DeFi) sector. But traditional institutions are also adopting the technology. One example is the confirmation of a web3 partnership between Hong Kong and Chainlink, as confirmed by Chainlink’s co-founder Sergey Nazarov and the nation’s Financial Services Secretary, Joseph Chan.
The post Chainlink (LINK) Hits 18-Months High, Targets More Upside appeared first on Coin Edition.