Chainlink May Rise 25% This Week As Bulls Work To Reclaim Its Pre-Crash Value

Christian Encila

2 years ago

3 mins read

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The use of the native token of Chainlink is seeing a decent rise. Today alone, the price of LINK has increased by 2.0% in the last 24 hours, as measured by statistics from CoinGecko. Though not a big deal in terms of massive increases, it pumps up the bulls.

In the weekly and bi-weekly timescale, the token shot up to 11.6% and 22.4% respectively. Meanwhile, let’s take a quick look at how the token has been performing:

The Proof-of-Reserve mechanism used by Chainlink is open and trustworthy, which encourages investment
CoinGecko has observed a surge in price, an indication of rising investor interest
Negative confirmation delays any decline, while positive indicators and investor optimism ease the breach at $7.808 barrier

This price movement made by LINK is just after BTC’s pullback. Not to mention that Chainlink’s official Twitter released its own version of a Proof-of-Reserve system.

According to the Tweet, this transparent system will satisfy the demands of consumers, especially after FTX’s mismanagement of user funds that resulted in the downfall of the crypto exchange.

Investor Confidence Needs Boost?

With investor confidence low, the price increase can be explained by the recent rise in BTC and the introduction of Chainlink’s POR system. As of this writing, the correlation between Bitcoin and LINK is 0.82.

However, the token’s price may experience a period of correction if the trust boost that prompted the recent price surge is reversed.

Chart: TradingView

As the time of writing, the current market pullback experienced rejection at the $7.80 level, but investor confidence must be high as CryptoQuant noted a decrease in exchange reserves.

Messari demonstrates that LINK’s indicators reflect an upward price trend. Sharpe’s ratio is 0.68, suggesting that the asset is lucrative despite its inherent risk.

LINK is currently trading at $7.60, up 11.4 percent in the last seven days, data from Coingecko show.

But can LINK maintain its current momentum? It appears that it can. Daily RSI values are increasing, indicating a protracted and sustained bullish trend in the intermediate and long-term.

The middle Bollinger band confirms this momentum, as it supports the price movement.

Connecting The Dots

However, CMF is currently -0.13, indicating that the market mood is still pessimistic. Previous price fluctuations also signal a demand block that might support a more robust bull run.

In the next days or weeks, the price of the Chainlink token is expected to rise. Chainlink is seen making a 25% rally this week, as Bulls work to recover the token’s recent losses.

If the ascending triangle reinforces the rejection at $7.808, bulls can attempt to retarget this level from the current rally’s support level of $6.709.

Once a breakthrough occurs on the rejection, it will be easier to target LINK’s price prior to the FTX crash.

LINK total market cap at $3.86 billion on the daily chart | Featured image from Mapping it Out, Chart: TradingView.com

Christian Encila

They say journalists never truly clock out. But for Christian, that's not just a metaphor, it's a lifestyle. By day, he navigates the ever-shifting tides of the cryptocurrency market, wielding words like a seasoned editor and crafting articles that decipher the jargon for the masses. When the PC goes on hibernate mode, however, his pursuits take a more mechanical (and sometimes philosophical) turn.

Christian's journey with the written word began long before the age of Bitcoin. In the hallowed halls of academia, he honed his craft as a feature writer for his college paper. This early love for storytelling paved the way for a successful stint as an editor at a data engineering firm, where his first-month essay win funded a months-long supply of doggie and kitty treats – a testament to his dedication to his furry companions (more on that later).

Christian then roamed the world of journalism, working at newspapers in Canada and even South Korea. He finally settled down at a local news giant in his hometown in the Philippines for a decade, becoming a total news junkie. But then, something new caught his eye: cryptocurrency. It was like a treasure hunt mixed with storytelling - right up his alley!

So, he landed a killer gig at NewsBTC, where he's one of the go-to guys for all things crypto. He breaks down this confusing stuff into bite-sized pieces, making it easy for anyone to understand (he salutes his management team for teaching him this skill).

Think Christian's all work and no play? Not a chance! When he's not at his computer, you'll find him indulging his passion for motorbikes. A true gearhead, Christian loves tinkering with his bike and savoring the joy of the open road on his 320-cc Yamaha R3. Once a speed demon who hit 120mph (a feat he vowed never to repeat), he now prefers leisurely rides along the coast, enjoying the wind in his thinning hair.

Speaking of chill, Christian's got a crew of furry friends waiting for him at home. Two cats and a dog. He swears cats are way smarter than dogs (sorry, Grizzly), but he adores them all anyway. Apparently, watching his pets just chillin’ helps him analyze and write meticulously formatted articles even better.

Here's the thing about this guy: He works a lot, but he keeps himself fueled by enough coffee to make it through the day - and some seriously delicious (Filipino) food. He says a delectable meal is the secret ingredient to a killer article. And after a long day of crypto crusading, he unwinds with some rum (mixed with milk) while watching slapstick movies.

Looking ahead, Christian sees a bright future with NewsBTC. He says he sees himself privileged to be part of an awesome organization, sharing his expertise and passion with a community he values, and fellow editors - and bosses - he deeply respects.

So, the next time you tread into the world of cryptocurrency, remember the man behind the words – the crypto crusader, the grease monkey, and the feline philosopher, all rolled into one.

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