Decentralized oracle service provider Chainlink (LINK) is once again facing strong trading activity. While the overall market continues to consolidate, the altcoin has risen 6.5% to $16 in the last 24 hours with an increase in trading activity. LINK is currently ranked 12th in terms of market value among the largest cryptocurrencies and seems to be aiming to be among the top 10.
Chainlink Poised for a Potential Major Breakout
Cryptocurrency analyst Michael van de Poppe pointed to the possibility of a bullish explosion in the potential trajectory of Chainlink’s LINK in a recent analysis. To support his forecast, he listed three factors. The first factor is liquidity absorption. LINK absorbed liquidity by dropping to the $12.20 level. The second factor is the resistance test. The major altcoin has passed multiple resistance tests so far, indicating that it is in a potential upward movement. The third factor is BTC and ETH trading parity dynamics. For LINK, the Bitcoin trading parity shows signs of bottoming out, while trading activity in the Ethereum trading parity is increasing day by day.
Considering these three factors, Van de Poppe stated that Chainlink could make a positive breakout in the near future and could rise to a price range of $25 to $30 in the coming months. Traders and investors need to closely follow all these developments for potential opportunities in the LINK market.
What’s Next for LINK?
For now, LINK’s price is showing a consistent upward trend, indicating signs of increasing bullish momentum. A Golden Cross could be seen in the coming days with a break from the 50/200 day EMAs, which would be indicative of significant price movement.
Moreover, the Moving Average Convergence Divergence (MACD) indicator on the daily timeframe is continuously presenting a green histogram, revealing that the dominant trend in the cryptocurrency market is bullish. In addition, the moving averages are consistently charting an upward trajectory, which points to a sustainable increase in LINK’s price in the coming days.
If the bulls manage to hold the price above the resistance level of $15.41, it will pave the way for Chainlink to test the upper resistance level of $16.47. Furthermore, maintaining stability above this level could push LINK to break the resistance level of $17.67 in the foreseeable future.