- Chainlink (LINK) is only 10.8% away from its January 2022 peak, signalling strong market momentum.
- LINK’s breakout from a long-term trend channel suggests a potential bullish shift, with support at $18.70.
- Rising trading volumes during price surges highlight growing confidence in LINK’s upward trajectory.
Chainlink (LINK) has gained market attention with an excellent late-week rally, reducing its gap to its three-year high from January 2022. Per the provided data by Santiment, this major cryptocurrency needs to increase by just 10.8% to reach this mark.
Interestingly, the absence of retail FOMO (fear of missing out) can also help this rally further. Historically, markets tend to move opposite to the expectations of the crowd, and prevailing disbelief could become the catalyst for LINK’s continued ascent.
As of now, Chainlink is trading at $ 25.17 with a 24-hour trading volume of $ 2.79B, market capitalization of $ 15.78B, and market dominance of 0.43%. In the last 24 hours, LINK’s price has increased by 7.05%.
Chainlink’s Breakout Hints at Further Growth
From a technical viewpoint, Chainlink has broken upwards from its medium- to long-term falling trend channel, which may suggest a possible change in market sentiment. This breakout has been accompanied by strong upward momentum, though predicting the long-term trend remains challenging at this stage.
The moving average indicator has flashed a positive signal, indicating continued upside. This is a lagging indicator, which means that most of the upside from the rally may already be realized. With no major resistance levels seen on the price chart at the moment, analysts expect more upside. In case of a pullback, LINK has the support of around $18.70, which may act as a buffer in case of further losses.
Momentum and Volume Trends Favor Bulls
Chainlink has strong positive momentum, with the RSI already above 70, signifying investors’ optimism over the prospects of the cryptocurrency. Consistent buyers’ readiness to pay premium underscores growing confidence in upward movement.”.
This trend is further corroborated by a positive volume balance, with trading volumes spurting on rallies and dying down during corrections. The lofty readings of the RSI serve as a warning as an overbought position exists, increasing the likelihood for a short-term correction “.
Chainlink has indeed painted a promising picture for investors seeking long-term gains with its current trajectory. With no retail-driven euphoria on the back of strong technical signals, this may be an indication that the upward momentum of LINK is likely to persist for a long period. However, the overbought reading from the RSI suggests market participants should be wary of any volatility.
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