While Bitcoin has already slept for 15 days, some crypto currencies have woken up again, and with a lot of enthusiasm. Yesterday the Chainlink crypt currency jumped 28%, which is a reason for us to make a technical analysis of its behavior.
With this strong rise it has obtained a great achievement, and that is to position itself as the 5th largest in the ecosystem, taking the place of Bitcoin Cash, with an advantage of almost $1 billion.
Chainlink the surprise crypt of the year
With Bitcoin locked in a narrow range, some participants have done so as well. However, even the short and medium term trend remains intact at the top, and with yesterday’s awakening of several altcoins, it’s quite likely that BTC is about to do so as well.
For the time being, let’s see how Bitcoin Rush behaves, and if it is possible that this rise will continue for a long time.
Chainlink: What is the reason for the strong rise?
Analyst indicates that Chainlink will reach $32
From the point of view of technical analysis, with a price in full search of its new historical maximum, there is no barrier where we can observe the price react to previously left areas of supply, and today this is totally evident with the case of Chainlink.
Speaking of the fundamental area, the rise of the LINK token is undoubtedly being driven by the increased use of oracles, a product of the explosive growth in the adoption of decentralised finance.
According to an analysis by Timothy Pertereson, a chartered alternative investment analyst, he predicts that growth in network usage and historical deviations are driving LINK to a $32 target by the end of this year, almost doubling today’s price.
However, he believes this price will not be sustainable. „Investors who buy at high levels risk losing 50% or more of their investment,“ he says.
He adds that most of the profits have already been generated. In our technical analysis of Chainlink below, we found that this view is quite accurate.
Chainlink Technical Analysis
From the weekly LINK vs. USDT chart we see the surprising rise in the price of this crypt currency during 2020, accumulating more than 1.100% gains if we measure the rise from the low reached last March.
Only during the last 2 weeks the gains have already exceeded 100%, with this we see a momentum in full development, and the great space that we should assume as a risk, in case we enter at this time and soon begin a major setback.
The incredible rise assures us that Timothy’s vision is true, the best part happened.
The medium-term trend is undeniably upward. Immediate weekly support is at $7.5, and as long as it remains intact, this trend remains in the hands of the bulls.