Chainlink (LINK) Rockets Past $6.5 Resistance: New Highs on the Horizon?

23 Sep 2023 by Crypto Presale 2 min read

Chainlink is one of top 30 cryptocurrencies with a positive growth in the last few days. LINK price has increased by 3.65% in the last 24 hours, 11.8% in the last 7 days and a remarkable 28.2% in the last 90 days. This data shows that LINK might be ending the year on a good note with the steady price increase that the token has been delivering.

Chainlink's remarkable gains can be largely attributed to its groundbreaking partnerships with industry leaders. Notably, ANZ, one of Australia's "Big Four" banks, recently executed a transaction involving tokenized assets, utilizing its A$DC stablecoin and Chainlink's Cross-Chain Interoperability Protocol (CCIP).

This development has demonstrated the bank's prowess in seamlessly transferring funds across various blockchain networks, bridging both open and private systems. Importantly, CCIP, Chainlink's innovative solution, is gaining substantial traction and attracting industry giants like ANZ. This wave of adoption is instilling confidence among investors and fostering a positive outlook for LINK's future.

Technical Analysis

Daily Timeframe

Source: TradingView

In the daily timeframe, Chainlink (LINK) recently broke out of a one-month range and crossed above the barrier around the $6.5 zone. This shows that the buyers are back in action and trying to drive the price up. Also, LINK is currently trading at $7.01; this is above the 50-day EMA, which is at $6.41, and the 200-day EMA, which is at $6.80. In addition, the RSI is trending at 58.92, which shows that the buyers are dominant in this timeframe.

4 Hour Timeframe

Source: TradingView

In the 4-hour timeframe, the overall market is bullish. The Relative Strength Index is at 63.62%, which shows that the buying momentum is strong. Also, the 50-day EMA and 200-day EMA have crossed over upward, which means the uptrend will continue in the short term. If this buying momentum continues, LINK might break above the minor resistance around the $7.1 zone and soar to the next key level around $8.4.

New Highs on the Horizon?

Binance, a prominent player in the cryptocurrency exchange, recently witnessed an intriguing phenomenon: a massive withdrawal of 4.7 million LINK tokens, equating to approximately $31.58 million, was moved from the exchange. What sets this event apart is not just the massive token volume but the rapid and coordinated action by 81 newly established wallets. This coordinated whale activity, characterised by the movement of LINK tokens away from centralised exchanges, suggests a deliberate accumulation strategy by large investors. Such strategic accumulation often signals bullish sentiments and hints at the potential for an impending price rally for LINK.

The technical indicators and the market sentiment around LINK are positive; all other factors remain the same, and LINK might soon make a new high.

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