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Like Bitcoin and other crypto assets, Chainlink (LINK) has been on a remarkable rally since the lows. The leading cryptocurrency this week hit a high of $4.20 — up 170% from the lows of March 12th — per data from Tradingview.
LINK has only held above $4.00 for a short period of time. But a prominent analyst suggested that should this region hold as support, Chainlink could go into “price discovery ORBIT.”
Chainlink (LINK) Needs to Hold ~$4.00
According to a prominent crypto trader, he thinks that if Chainlink can “build some semblance of structure above” $3.84, the cryptocurrency could soon go into “price discovery ORBIT.”
While he didn’t expand on this point, his chart indicates that over the past few months, the level of $3.84 has been extremely important, acting as support and resistance on multiple occasions.
Chart from cryptocurrency derivatives trader Cantering Clark
As it stands, the cryptocurrency seems poised to hold this level.
LINK is trading at $4.07 as of the time of this article’s writing, with no notable pullback despite Bitcoin’s 5% retracement. In fact, on the day, the altcoin is up 5%, strongly outperforming the cryptocurrency market leader.
Strong Fundamental Factors Could Support the Crypto
The fundamentals of the crypto could support the holding of the current price levels.
Chainlink was just added to Gemini, the New York-based crypto exchange run by the Winklevoss Twins, some of the most prominent Bitcoin bulls. This listing, which also sees five other digital assets now supported by the platform, came shortly after Gemini CEO Tyler Winklevoss said:
“I really appreciate the passion of the LINK Marines. Their fervor and dedication reminds me of the early Bitcoin and Ethereum communities. Unlike many other crypto armies, they are dedicated to a project that has real promise and technical merit.”
Also in the vein of the adoption of the popular cryptocurrency, ParaFi Capital, a crypto fund, has proposed that LINK should be supported by the Ethereum-based DeFi platform MakerDAO.
The reasons: Chainlink is the 12th largest crypto asset and the project has seen mounds of support within the DeFi community.
The discussion of LINK being added to Maker garnered much steam that Rune Christensen, founder of MakerDAO, wrote:
“Even assets that are correlated with ETH, like LINK, would help to source more Dai generation and help with restoring the peg and DSR.”
Bitcoin’s the Crypto Market’s Focus
While this could play out, Bitcoin is the focus of the crypto market at the moment.
Sharing the chart seen below, the lead technical analyst at crypto research firm Blockfyre remarked that as Bitcoin slows down, “altcoins are really going to struggle,” adding that it’s an absolutely “brutal’ outlook for this segment of the market. He added that there is “max pain ahead” in his opinion.
Chart from @pentosh1, the lead technical analyst at crypto research firm Blockfyre.
Photo by Greg Rakozy on Unsplash