According to perpetual futures contracts on Binance, LINK has gained more than 35% to its value in the last eight days of trading, making it one of the strongest positions on the cryptocurrency market.
Such a strong rise could be tied to the link's introduction of a staking mechanism and updated roadmap. The on-chain data suggests that whales are the main buyers of the tokens. Following the release of the staking mechanism, Chainlink developers expect to reward their users, increase the community's participation in the network's growth and empower node operations.
But in addition to the fundamental growth of the network, there are numerous market-related factors that might have helped LINK to gain a foothold above $8.
Indicators reversed way before update
Despite the big release and upcoming announcements, indicators like the Relative Strength Index changed their direction at least a week before news of upcoming features. Unfortunately, the price did not immediately follow the indicator, which created a divergence between the two metrics.
Whenever an RSI divergence appears on the downtrending chart, investors expect a reversal in the upcoming days or week, which we are seeing right now on Link.
As for upcoming market movements, Link has reached the first resistance level reflected in the 50-day exponential moving average. This is the first test of the moving average since the sell-off in April that sent Link directly to the $5 price range.