Chainlink (LINK) Price Up 6%, Will It Break the Resistance Trend line to Set An Upward Journey

30 May, 2021

Senior Journalist

Expertise : Cryptocurrency, Blockchain, Macro Finance

Bhushan is a seasoned crypto writer with over eight years of experience spanning more than 10,000 contributions across multiple platforms like CoinGape, CoinSpeaker, Bitcoinist, Crypto News Flash, and others. Being a Fintech enthusiast, he loves reporting across Crypto, Blockchain, DeFi, Global Macros with a keen understanding in financial markets.   He is committed to continuous learning and stays motivated by sharing the knowledge he acquires. In his free time, Bhushan enjoys reading thriller fiction novels and occasionally explores his culinary skills. Bhushan has a bachelors degree in electronics engineering, however, his interest in finance and economics drives him to crypto and blockchain.

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LINK, the native cryptocurrency of oracle service provider Chainlink, is trading 6% up today at $28.82 with a market cap of $12.3 billion. Chainlink (LINK) has shown a strong pullback after falling to a low of $17.50 during the recent market correction.

After hitting this low last Sunday on May 23, the LINK price doubled to $35 within four days. However, it has been unable to breach the resistance trend line as shown in the chart below from on-chain data provider Santiment.

Today, Chainlink seems to be making another attempt to break past this resistance trend line and set an upward trend. On the other hand, Santiment shows that it is important for LINK to stay above the support area. As the Santiment report notes:

“LINK is now at a point of resistance and will have to stay above the support area for another chance to break above the resistance trendline. Things will look really bad if we break support and go below the previous low, making yet another lower low to further confirms a bear trend.”

Chainlink (LINK) Exchange Inflows Spike

However, during the recent bottom of the LINK price, the Daily Active Deposits (DAD) have surged showing that a large number of people ended up liquidating their supply. Besides, the below graph clearly shows that a large number of LINK investors made heavy exchange deposits.

The positive indicator for LINK is that the MVRV 30-Day has cooled down which suggests fewer risks and ideal bottom pickings. Looking forward, Santiment notes:

Overall, LINK’s onchain metrics are showing healthy signs following a reset. Capitulation likely have occurred based on exchange inflows and daily active deposits, which is ideal for forming bottoming structure. That said, price is at resistance currently and the next few weeks will eventually reveal where we are going.

Chainlink (LINK) continues to remain one of the top altcoin picks for investors.

Investment disclaimer: The content reflects the author’s personal views and current market conditions. Please conduct your own research before investing in cryptocurrencies, as neither the author nor the publication is responsible for any financial losses.

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Why Trust CoinGape

CoinGape has covered the cryptocurrency industry since 2017, aiming to provide informative insights Read more… to our readers. Our journal analysts bring years of experience in market analysis and blockchain technology to ensure factual accuracy and balanced reporting. By following our Editorial Policy, our writers verify every source, fact-check each story, rely on reputable sources, and attribute quotes and media correctly. We also follow a rigorous Review Methodology when evaluating exchanges and tools. From emerging blockchain projects and coin launches to industry events and technical developments, we cover all facets of the digital asset space with unwavering commitment to timely, relevant information.