While the larger part of cryptocurrency market is in turmoil - as of the time of writing the gainers/losers ratio stands at 45% to 55%, which represents a slight improvement after witnessing the sea of red over the past couple of weeks - there are several cryptocurrencies that continue putting double-digit gains, one of them being Chainlink (LINK).
While the last four weeks have been devastating for most cryptocurrencies, including Bitcoin that has slid from the level above $10,000 to the supposed bottom at $8,700, LINK has been putting up gains like there’s no tomorrow. In a span of 30 days, the 11th cryptocurrency increased in value by 73%, having outperformed the dominant Bitcoin and Ethereum by miles.
LINK/BTC/ETH performance comparison chart
The same applies to the past week, during which Chainlink got buffed by 36%, while the top cryptocurrencies remained on the negative side. As of the time of writing, the price of LINK rose by 10% in the last 24 hours and has actually broken the all-time time at $4.85, and is now moving is full steam towards the new peak at $5. The reasons behind such a significant daily pump on the back of the falling market are yet unclear, but the fact remains that we might be looking at a birth of a new crypto superstar of 2020, though LINK has probably already earned this status since it had already showcased the 1000%+ gains in the last 12 months.
Given that the current price action of Chainlink is quite intense let’s begin the analysis by checking out an hourly chart. Here we can see that LINK continues to move in a picture-perfect uptrend without giving even the slightest hint at the underlying shifts in the market. The price has indeed got dragged below both 50-period EMA and 200-period EMA for a short duration of time but found the strength to make a swift recovery and disallow the moving averages to form a death cross on that time frame.
1-hour LINK/USDT chart
In fact, the resurgence of Chainlink was so profound that the price has not only began making higher lows and higher highs within the latest minor uptrend, but its last retracement, which occurred prior to the recent 10% rise, has made the lower high in the structure of a previous price swing, which saw the coin bottoming out at $3.32.
By the way, this price bottom has turned out to be a lower high of a long-standing uptrend, which has been lingering since the beginning of January, which once again proves that Chainlink is currently a picture of health among the overwhelming majority of cryptocurrencies.
1-day LINK/USDT chart
Moving on to the daily time frame, where traders can reassure themselves of the perfectness of the coin’s upward movement. Most notably, how it has bounced off the 50EMA and went on to make a new higher high.
Right now, LINK is soaring to the upper channel line that would mark the emergence of a new all-time high and higher high that could probably get extended to $5.13 or even higher, given that Stochastic hasn’t even entered the overbought area. All in all, if you are looking for a top cryptocurrency to enter a long position, Chainlink would constitute one of the finest choices in that regard.
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