Chainlink Gains More Than 6% Intraday And Is Approaching The $7 Milestone

2 mins mins

19 September 2023, 09:32:13 GMT +0000

Key Points:

Chainlink’s cryptocurrency, LINK, outperforms the broader market with a 6% surge.
Optimism surrounds LINK’s partnership with SWIFT, the interbank messaging system, to advance tokenized asset adoption.
On-chain data indicates that whales are accumulating LINK.

In a market characterized by constant battles between bulls and bears, Chainlink’s cryptocurrency, LINK, has demonstrated remarkable resilience, surging over 6% today. This impressive performance has outpaced the broader cryptocurrency market, which has been grappling with volatility.

Chainlink Gains More Than 6% Intraday And Is Approaching The $7 Milestone 3

A key turning point for LINK came as it broke out of a prolonged consolidation phase, surpassing the resistance level at $6.37. This breakout has sparked optimism among investors, hinting at the potential for forthcoming bullish momentum.

On Tuesday, LINK reached a price of $6.76, coinciding with a 3% gain in Bitcoin’s value. The catalyst behind this surge is the market’s positive response to Chainlink’s collaboration with SWIFT, the interbank messaging system, aimed at scaling tokenized asset adoption.

Chainlink had spent over a month trading within a consolidation range, frequently testing the critical support level at $5.82. The bulls managed to defend this price level and subsequently pushed LINK beyond the $6.37 resistance, signaling a shift in market sentiment.

However, traders should exercise caution, considering the persistent resistance from a downsloping trend observed over the past two months. Recent reversals in the daily chart indicate potential selling pressure. If LINK experiences a downturn from this trendline and falls below the $6.3 mark, it could signify a continuation of the correction trend, potentially retracing to the established support at $5.8.

Additionally, on-chain analysis from Lookonchain reveals a noteworthy development: approximately 35 new LINK wallets have withdrawn a substantial 755,687 LINK tokens from Binance. This activity may suggest that large investors, commonly referred to as whales, are actively accumulating LINK, further contributing to the coin’s positive outlook.

DISCLAIMER: The information on this website is provided as general market commentary and does not constitute investment advice. We encourage you to do your own research before investing.