Chainlink has been in an accumulation phase for a month after it hit ATH levels. LINK had set an ATH record of $ 37 on February 20, 2021, and a period of consolidation followed due to selling pressure. It fell to $ 25 and was supported.
However, the price of the LINK token rose acutely by 9% on March 17, 2021. This increase was due to Grayscale’s announcement on Wednesday that it would announce plans for new investment trusts related to its digital assets. Link Token made it onto the list along with MANA, FIL and others. All of the assets on the list showed significant volatility.
However, traders are slowly collecting news like Filecoin incorporating the chain link oracles to create a truly decentralized Web 3.0.
The decentralized storage network @Filecoin will integrate #Chainlink oracles to create an end-to-end Web 3.0 development stack that enables bi-directional communication between Filecoin and smart contracts for novel use cases such as #NFT insurance and DataDAOs. https://t.co/vppVr5J1FR
– Chainlink – Official Channel (@chainlink) March 24, 2021 Filecoin and Chainlink Integrate to Provide Decentralized Storage
Often, cryptocurrencies react sharply to the positive news in the market. However, it remains to be seen which direction it will take in the next quarter.
Technical analysis of SHORTCUT
At the current price of $ 28.3931, Chain link has a market capitalization of $ 11.812 billion. Total transaction value in the past 24 hours exceeded $ 1.079 billion, up 19.41% over the past 24 hours.
30 minute candle chart – link price analysis
A look at the 30-minute candlestick chart shows that the link followed a parallel ascending pattern. Shortly after Chainlink’s announcement, the link price was reversed by receiving support at $ 24.5. Parallel resistance along with the higher highs should be broken to see bullish momentum. However, the candles were unable to form above the USD 28.5 resistance level.
There is a good level of support at $ 28. There is a possibility of good consolidation at the same level. If the support levels at USD 28 are not met, there are additional support levels at USD 27.5 and USD 26.1.
Trends aside, the Bollinger Band shows the potential for strong momentum in line with price movement. The relative strength index also suggests this and is between 55 and 60 levels. The currency is falling at a stage where the price movement can trigger the bull run or bearish fall.
Fibonacci levels indicate that Link’s value is trading at a strong 0.76 level. Hence, it can be assumed that if the market is to break its ATH level it will need to consolidate around the current price level of $ 28.3931.
There is also the possibility of failure due to volume loss. However, US $ 25 support is available this fall.
Support levels: $ 28, $ 27.5, $ 26.1.
Resistance Levels: $ 28.5, $ 29.3, $ 31.
MACD: Moderate to bullish