Chainlink (LINK) Price Analysis: Analyzing Reasons for Growth to TOP 3

Price Predictions
Sun, 08/09/2020 - 14:55
Denys Serhiichuk
How long can Chainlink (LINK) maintain the sharp growth?
Chainlink (LINK) Price Analysis: Analyzing Reasons for Growth to TOP 3
Cover image via www.tradingview.com

Disclaimer: The opinion expressed here is not investment advice – it is provided for informational purposes only. It does not necessarily reflect the opinion of U.Today. Every investment and all trading involves risk, so you should always perform your own research prior to making decisions. We do not recommend investing money you cannot afford to lose.

With the last day of the week, most of the Top 10 coins have faced a correction; however, there is one exception to the rule. Chainlink (LINK) has skyrocketed up 23% since yesterday and is now located in 6th place in the global cryptocurrency rankings.

Top 10 coins by Coinstats
Top 10 Coins by Coinstats

Against the high volatility of the altcoins, the dominance rate of Bitcoin (BTC) has broken the 60% dominance rate as the current index makes up 59.7%.

BTC’s market share
BTC’s Market Share

Below is the relevant data for Chainlink (LINK) and how it's looking today:

  • Name: Chainlink

  • Ticker: LINK

  • Market Cap: $4,656,606,195

  • Price: $13.30

  • Volume (24H): $2,994,091,609

  • Change (24H): 24.75%

The aforementioned data is relevant at press time.

LINK/USD: Can Chainlink Enter the Top 5 Coins by the End of the Month?

Chainlink (LINK) is today's top gainer. Of the top 20 cryptocurrencies, it has grown the most out in terms global rankings. The price change from last week has constituted a surge of 59%.

LINK/USD chart by TradingView
LINK/USD Chart by TradingView

Looking at the 4H chart, Chainlink (LINK) is located in the overbought zone according to the Relative Strength Index (RSI). Even though the bulls are maintaining the growth of the altcoin, the trading volume has slightly declined, which means that there are no active buyers who want to buy LINK at the moment. Respectively, there is a high probability of seeing a correction to the nearest support level at $12.40 in the next few days.

LINK/USD chart by TradingView
LINK/USD chart by TradingView

Looking at the bigger picture, the situation also considers a possible correction as the coin is overbought. Chainlink (LINK) has been trading in the ascending channel since the end of July.

Related Chainlink (LINK) Grabs Third Spot After 37 Percent Rally, Surpasses XRP
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Chainlink (LINK) Grabs Third Spot After 37 Percent Rally, Surpasses XRP

Buyers have confirmed the bullish trend; however, they need the altcoin to face a short correction before the upcoming rise. In this particular case, the point where a potential bounce off could occur is the $10.30 mark.

LINK/USD chart by TradingView
LINK/USD Chart by TradingView

Looking at the weekly chart, the rise has been accompanied by a rise in the trading volume. The bulls have broken all resistance levels; however, Chainlink (LINK) could retest the 'mirror' level before updating the new peaks. This is why the most likely price action is a drop to the yellow range between $9-$11. However, if the bears push it below $9 and fix it at this price, then the bearish scenario will be cancelled.

At press time, Chainlink was trading at $13.34.

 
About the author

With more than 5 years of trading, Denys has a deep knowledge of both technical and fundamental market analysis. Mainly, he has started his blog on TradingView where publishes all relevant information and makes predictions about top coins.
Thus, his experience is backed up by working in top blockchain related companies such as W12, Platinum Listing & ICO Advisory, ATB Coin, and others, can be contacted at denys.serhiichuk@u.today.