Chainlink (LINK) Records 7% In The Last Day As Market Recovers

The crypto market is currently recovering from the February 22 price pullbacks, so, many cryptocurrencies are trading in green today. The top two coins, Bitcoin and Ethereum, gained 1.70% and 2.06% in the last 24 hours earlier today before a slight pullback. Also, the general crypto market cap is up by 2.19%. But even with these 24-hour price gains, many of these coins are red in the weekly price trend.

Chainlink (LINK) is one of the cryptocurrencies posting green price trends in 1 hour, 24 hours, and weekly. As of the time of writing, the coin is up by 7.75% in 24 hours. Currently, its 1-hour gains stand at 0.31% while the 7 days gains stand at 9.50%. LINK has performed better than BTC, ETH, USDT, and many others.

Related Reading: Crypto Assets Starting To Become “Overbought,” Santiment Says

The question now is, will LINK continue this upward trend? Are some forces pushing it, and what will the next few days bring to the coin? Let’s check them out.

What Are The Forces Behind LINK?

Generally, market sentiment, macros, network developments, demand, and supply affect the prices of crypto assets. The market sentiment today, February 23, is at the greed level. It stood at 61 last week but dropped to 59 on February 22. Even though the level has dropped to 56 today, it hasn’t entered the fear zone.

Looking at the Chainlink network activities, and developmental approaches, it is clear that the community and developers are active. LINK’s market cap is currently up by 7.28%, while the trading volume is up by 2.58%, indicating increased activities.

Secondly, Chainlink developers have made commendable improvements and achievements in recent times. According to a post on Chainlink Today, TrueUSD (TUSD) has announced plans to mint with Chainlink Proof of Reserve. The PoR will verify its USD reserves automatically to ensure that the USD-backed stablecoin is fully collateralized before minting.

Another important development on the horizon is that some top shots in the industry, such as Coinbase’s Ming Jiang, CryptoFinance’s Joe Sticco, and ChainlinkLabs, are collaborating to explore new use cases powered by Chainlink linking DeFi and NFTs. These new applications will boost LINK price as it powers the network.

Chainlink Price Prediction: Will The Rally Continue?

Chainlink is trading in the green today after a price pullback on February 21, 2023. The bulls have rallied again, driving the price to a new level. LINK is trading at $8.12, above the $8.01 price level it attained on February 20, 2023.

The hammer formed on February 22 signals a possible bullish trend moving forward. Also, the asset is trading above its 50-day Simple Moving Average (SMA), which is moving upwards and will likely cross over the 200-day SMA soon. LINK is also trading above its 200-day SMA, a long-term bullish sentiment.

The Relative Strength Index (RSI) is at 60.96, which is in the buy zone but not in the overbought region of 70. The indicator is moving upwards, which is slightly bullish. LINK’s Moving Average Convergence/Divergence (MACD) is above the signal line, which is another bullish signal.

Related Reading: Bitcoin Dips Below $24,000 Again As DXY Hits 7-Week High

The support levels are S7.07, $7.20, and $7.46, while the resistance levels are $7.85, $7.98, and $8.24. LINK is currently testing the $7.85 and $7.98 resistance levels. If successful, it will likely trade above $8 in the coming days.

Note that cryptocurrencies are volatile and can deviate from predicted price behavior due to macros and market sentiments. Proper research, analysis, and risk management techniques are essential for all crypto traders.

Featured image from Pixabay and chart from TradingView.com

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