For yet another time, Chainlink (LINK/USD) is showing that it is punching below its knees. LINK has been trading within a tight range, with bearish pressure pushing the cryptocurrency below an ascending trendline. The token has since recovered, and a strong bullish momentum is building. So what happened?
LINK added more than 7% on Friday, taking the total gains in the week to 20%. The gains came after crucial cryptocurrency news for Chainlink. According to a Thursday announcement, Chainlink has partnered with Seedify Fund. The entity is a major gaming, metaverse, and NFT launchpad and incubator. Seedify Fund will rely on Chainlink’s oracle services to power growth in NFT and GameFi sectors.
Besides, Chainlink staking remains a key price trigger for growing adoption, boosting the native token. As of the end of October, the number of addresses holding at least 100,000 LINK hit 459, the highest since 2017. The rising investment reflects optimism around Chainlink staking, expected by the end of 2022. Consequently, amid the recent LINK struggles, positive developments could support the price towards the year-end.
LINK crosses above the 200-day MA for the first time since January
Source – TradingView
Technically, LINK has broken past the $8.0 resistance in a bullish push. The cryptocurrency currently trades at $8.4. Buyers are active on the token, with an RSI reading of 65, near the overbought region.
A key bullish indicator is the price recovery above the 200-day moving average. The last time that LINK traded above the longer-term MA was mid-January 2022.
What next for LINK?
A breakout at $8.0 will be confirmed by closing the candlestick above the crucial resistance. That will see $8.0 become a support zone and encourage more buyers to snap the token.
On the flip side, in a less likely scenario, LINK will close below $8.0. In such a case, the price may consolidate before gathering momentum to push above the resistance again.
Buyers need to be patient before buying LINK. However, the bottom line is that LINK is about to turn bullish, and early birds will catch a worm.
Where to buy LINK
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Disclaimer
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