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ChainLink Price Analysis - LINK Sets New ATHs At $54.40 After Epic 31.5% Weekly Surge

source-logo  coincodex.com 06 May 2021 09:09, UTC

Key highlights:

  • Chainlink is up by a whopping 31.5% this week as the cryptocurrency set a new ATH price above $50 at $54.40 yesterday.
  • The cryptocurrency managed to break a very long-term rising trend line that dates back to June 2020. 
  • Against Bitcoin, Chainlink also pushed higher to break resistance at ₿0.0008 to reach as high as ₿0.000937 (bearish .5 Fib) yesterday.

Buy ChainLink on Binance

ChainLink price $375
Key LINK resistance levels $51.07, $54.40, $56, $58.56, $60
Key LINK support levels $46, $44.20, $41.05, $40, $37.90

*Price at the time of writing

Chainlink saw a robust 31.5% price surge over the last week of trading as the cryptocurrency managed to spike past $50 and reached a new ATH price at $54.40 (1.618 Fib Extension). The cryptocurrency had also penetrated above a very long-term rising trend line yesterday that dated back to June 2020.

The decentralized pricing project continues to grow at an alarming rate as DeFi projects across the board continue to integrate Chainlink oracle feeds into their system for pricing data. In fact, analysts have estimated that Chainlink’s network growth sits at around 12% per month. According to the crypto analyst Timothy Peterson, this growth equates to approximately 300% per year for Chainlink when the growth data is compoudned.

1/ #ChainLink's network is growing at a rate of about 12% per month. pic.twitter.com/gQrUzXhjUB

— Timothy Peterson (@nsquaredcrypto) May 4, 2021

The growth is primarily due to the fact that Chainlink continues to amass a slew of integrations from different projects. Earlier in April, Chainlink had announced that they managed to celebrate its 500th integration, which includes 84 other blockchain, 213 different DeFi projects, 64 node operators,  64 data providers, 24 gaming projects, 22 NFT projects, and 33 infrastructure integrations:

Today #Chainlink celebrates it's 500th integration! ?

The recent announcement of @GAUGECASH upgrading its existing oracle solution to Chainlink, pushes us firmly over the line.

There's only one oracle solution.

500 projects chose Chainlink. Will you?#4IR #PoweredByChainlink https://t.co/r29k2zcPWl pic.twitter.com/EpB480mBaT

— TheLinkMarine 2.0 ? (@TheLinkMarine1) April 21, 2021

On top of all of this, it seems that the total number of holders of LINK continues to rise as the community recently reported that the network has over 500,000 active wallets that hold some LINK inside them.

The following chart from Glassnode shows how quickly the number of wallets has been growing since the start of May 2020:

Lastly, developers released a new version of their Whitepaper during mid-April. You can read that here.

Chainlink is now ranked in the 12th position as it currently holds a $19.8 billion market cap value.

Chainlink Price Analysis

What has been going on?

Looking at the daily chart above, we can see that LINK started to surge in April as it hit resistance at $42.76 (1.272 Fib Extension). Interestingly, this level of resistance was further bolstered by a rising trend line that has been in play since June last year. The market could not overcome this combined level of resistance in April and ended up falling into the support at $31 (.618 Fib Retracement) in the second half of the month.

By the start of May, LINk had recovered to $38. It continued higher from there break the $42.76 resistance and reach the resistance at the aforementioned rising trend line on Tuesday. This trend line was finally penetrated yesterday as LINK surged higher above $50 to set a new ATH price at $54.40 (provided by a 1.618 Fib Extension level - orange).

Since setting the new ATH, LINK has dropped slightly beneath $50 as it now trades at $47.15.

LINK price short term prediction: Bullish

LINK is certainly bullish right now. The coin would need to fall beneath $31 (100-days EMA) to turn neutral, and it would need to continue further beneath the March lows at $24 to be in danger of turning bearish in the short term.

If the sellers do push lower, the first level of support lies at the last rising trend line (now support), around $45. This is followed by $44.20 (.382 Fib Retracement), $42.76, $41.05 (.5 Fib Retracement), $40, and $27.91 (.618 Fib Retracement).

Where is the resistance toward the upside?

On the other side, the first level of strong resistance now lies at the ATH price at $54.40 (1.618 Fib extension - orange). This is followed by $56, $58.56 (1.618 Fib Extension - green), $60, and $61.60 (1.272 Fib Extension - red).

What has been going on?

LINK is also performing very well against Bitcoin itself. The coin had rebounded from ₿0.00045 at the start of April but struggled to break resistance at ₿0.0007 until May started.

On Tuesday, LINK managed to break the 2021 high as it passed the resistance at ₿0.0008 (bearish .382 Fib Retracement). It continued further higher yesterday to set a new 2021 high price at ₿0.000937 (bearish .5 Fib Retracement). It could not overcome this level of resistance and has since dropped lower into the support at ₿0.000825 (.236 Fib Retracement).

LINK/BTC price short term prediction: Neutral

LINK is now bullish against Bitcoin after setting a new 2021 high. It would need to drop beneath ₿0.0007 to turn neutral again and would have to continue further beneath the April lows at ₿0.0005 to be in danger of turning bearish in the short term.

If the sellers do push lower, the first level of support is expected at ₿0.0008. This is followed by ₿0.00075 (.382 Fib Retracement), ₿0.0007 (.5 Fib Retracement), ₿0.000641 (.618 Fib Retracement), and ₿0.000604.

Where is the resistance toward the upside?

On the other side, the first level of strong resistance lies at ₿0.000909. This is followed by ₿0.000937 (bearish. 5 Fib Retracement), ₿0.000969 (1.414 Fib Extension), and ₿0.001.

If the buyers continue to drive further above ₿0.001, additional resistance lies at ₿0.00107 (bearish .618 Fib Retracement), ₿0.0011, and ₿0.00113 (1.414 Fib Extension).

Previous Technical Analysis

At CoinCodex, we regularly publish price analysis articles focused on the top cryptocurrencies. Here's 3 of our most recent technical analysis articles:

  • Uniswap Price Analysis - UNI Sees 10% Price Hike Ahead of Version 3 Launch Tomorrow (Bullish)
  • Bitcoin Dominance Analysis - BTC Dominance Trading In Long Term Ascending Triangle - Is Altseason 2.0 Being Pushed Further Back? (Bullish)
  • Dogecoin Price Analysis - DOGE Sets New ATHs As Market Cap Surpasses Twitter (Bullish)
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