The price maintains the 8-day EMA and 18-day crossed to the upside, but the 200-period SMA is still far away. Since the recent rise in the price of LINK is still not relevant enough, it seems a necessary respite before another drop.
LINK recently broke out of the short-term bearish trend after Chainlink released a new road map. That raised optimism among investors and the volatile rally in the price.
LINK is trading at around USD 9.20 and has accumulated a 32.5% gain over the last seven days. While its daily trading volume is above USD 885.66 million, its market capitalization is about USD 4.30 billion. It occupies 21st place in the cryptocurrency ranking, according to CoinGecko.
The cryptocurrency Chainlink (LINK) aims to incentivize node operators rather than make everyday purchases. Those network participants in charge of securely transferring data to and from blockchains receive their payment in LINK.
There are currently 467,009,550 circulating Chainlink coins out of a maximum supply of 1,000,000,000. The same as happens with Bitcoin, LINK has a limited supply that guarantees its relative scarcity.
Technical Analysis of the Rise in the Price of LINK
The price of LINK overcame the short-term bearish trend after the positive catalyst caused a sharp rise. It is possible to expect higher gains within the coming hours/days.
Following the current momentum, the price breaks through the 8-day EMA and 18-day to the upside. However, the 200-period SMA is still far from the price, a sign of significant medium-term bearish strength.
LINK Needs to Make Significantly Higher Gains
The weekly chart shows that the recent rise in the price of LINK is still not relevant enough. It seems to be a necessary respite before it drops again.
Since early May 2021, the price of LINK has continuously reached lower lows. Besides, it will take long before there is a change in that direction.
However, the price holds relevant support at USD 6.51, an excellent point to expect a reversal after the sharp drop. However, it is still too early to confirm that view.
There may probably be a broader rally in the value of LINK, followed by a new drop. It would be necessary to monitor the price if it broke through the above support after falling again. On the contrary, the bulls would start to seek to reach a new higher low.
Performance of the Price of LINK against Bitcoin
Cryptocurrencies play a relevant role in the economy, evident in the growing number of investors on exchanges. In the case of LINK, its price has been gaining ground over the last week, making it more attractive.
While Bitcoin has only accumulated a 0.9% gain, the price of LINK has increased by 32.5% over the last week. That way, the latter has become the best-performing crypto asset on the top 50 list.
However, it is convenient to research before investing in any cryptocurrency to reduce the probability of losing money. Knowing how the price has evolved over some time will allow making more accurate decisions.
By Alexander Salazar
