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Chainlink’s (LINK) price has defended its crucial support level of $17.5, which prompted a bull run towards and past its all-time high of $20.
Fundamental analysis: Chainlink whales on the increase
Chainlink is a decentralized oracle network that aims to connect smart contract technology with data from the real world. The project was developed by Sergey Nazarov, with the other co-founder being Steve Ellis. Chainlink came out as an ICO in September 2017 and raised $32 million. LINK is the native cryptocurrency of the Chainlink decentralized oracle network, and its main use is to pay node operators.
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The vast majority of analysts consider Chainlink to be a cryptocurrency with great fundamentals, especially with the project getting more recognition from both institutions and the retail sector as time passes. When it comes to the LINK cryptocurrency holders, a metric showing the number of whales has been on the increase in the past couple of months. On top of that, the recent partnership with Paxos regarding decentralized oracles has contributed to the overall bullishness of the cryptocurrency.
At the time of writing, LINK is trading for $19.51, representing a price increase of 68.20% when compared to the previous month’s value. Chainlink is the largest DeFi project and 9th largest cryptocurrency by market cap in general, with a total value of $8 billion.
LINK/USD technical analysis: LINK breezes through resistances after breaking $17.5
Chainlink (LINK) has managed to stop its descent at the low of $8.72 on 23 Dec and slowly push its price up. As time passed, various fundamental bullish indicators came into play, inspiring bulls to buy more and more LINK. While Chainlink is, inherently correlated to Bitcoin’s movements (just like every other cryptocurrency), LINK seems to be following BTC’s price direction, while the intensity of the move increases when BTC goes up and reduces when BTC goes down.
LINK faces a strong resistance at the previous $20 all-time high, and it seems like the cryptocurrency won’t be able to break it with confidence. On the other hand, its downside is guarded by the the $18.5 level and the $17-$17.5 support zone.
LINK’s RSI on the daily time-frame was near the overbought territory for some time, but stepped away from it when BTC pulled back. Its RSI currently ascending towards the overbought territory yet again, with a value of 66.73.
LINK’s hourly time-frame shows us how the cryptocurrency managed to slowly make progress in the past days on fairly average volume. However, after it conquered the major resistance zone of $17-$17.5, it started pushing towards the upside with almost no pushback. This made Chainlink score double-digit gains in the past 24 hours, and even create a new all-time high of $21.4. While many people are buying Chainlink at the moment simply due to its fundamental outlook, technical overview calls for a slight decline in the short-term.