Chainlink (LINK) is on a strong uptrend, On July 13, Chainlink (LINK) recovered more than 34% to hit a new all-time high of 8.48 USDT
Since then, the price corrected back to the $ 7 range, bringing us to $ 8.57 as of this writing, altcoin has surpassed its recent all-time high.
What has sent altcoin to skyrocket into the top ten cryptocurrency list. However, due to strong movement in the past few days, MACD has deepened into overbought territory, suggesting that a minor consolidation or correction is likely to occur in the coming days.
LINK has recovered 167% during 2020 and is still one of the best in the cryptocurrency market, but this is not the first time that it has gotten this description. In 2019, ChainLink recovered 1.81%, the return on investment for those who bought at the first indicated price now exceeds 5,000%.
The cryptocurrency ranks eighth on CoinMarketCap with a total market capitalization of $ 3,440,966,682 USD. He faced resistance at USDT 8.48 and crossed it with no problem.
The bulls defended the Fibonacci retracement level of 38.2% from USDT 7.0023, which is very positive. This suggests that the bulls are not waiting for a deeper correction in Chainlink (LINK) to establish new positions and the bullish trend is intact. While the Triple EMA is above the Double EMA
Therefore Chainlink (LINK) today outperformed BINANCE Coin (BNB) and Litecoin (LTC) in market capitalization. CoinMarketCap data shows that LINK's market cap increased to $ 2.86 billion as the price rose 9% to $ 8.67. This brought market capitalization above BNB and LTC, whose market capitalization stands at $ 2.84 billion and $ 2.83 billion, respectively.
The bears are currently trying to defend the resistance above $ 8.48, but if the bulls can keep the price above this level, the eighth cryptocurrency on CoinMarketCap is likely to rise to USDT 10.
However, MACD is deep in overbought territory, which warrants caution. If the LINK / USDT pair is struggling to stay above $ 8.48, it could enter a few days of consolidation or a minor correction.
CoinMetrics noted that various point data supports LINK's price. For example, the total number of active addresses and the number of transactions have increased, this is synonymous with the number of people they have and, more importantly, the use of LINK has increased.
Chainlink has been in the news a lot in the past few months with a number of partnerships and integrations. However, every time a cryptocurrency or token experiences a rapid appreciation, the cryptocurrency community begins to speculate on the underlying causes. Usually the most popular explanation is that the company behind the asset must "pump it up."
The number of active addresses increased from 970 on January 1 to 14,255 on July 13, almost a growth of 1,500%. During the same time period, the number of addresses with non-zero balances has doubled, while the number of LINKs stored on exchanges has decreased by 14 million or 16%.
Chainlink price continues to rise towards new highs, but is it reaching bubble territory?
As the DeFi sector continues to grow, so does the need for reliable and decentralized oracles that can provide external information to smart contracts. This allows DeFi applications, such as insurance and gambling, to be more secure and reliable.
If there is a greater demand for DeFi tokens, this could help drive the LINK price in a much more direct way, especially considering that the oracles must do the LINK staking in order to participate in the network.
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