Chainlink (LINK) rose high in the early European trading session on Thursday as traders continued to look for hedging in the cryptocurrency market against a choppy Bitcoin.
The LINK to dollar exchange rate rose to $ 24.9, up 15.16 percent from the intraday opening value. The latest advantage appeared near a confluence of supports around the $ 19-20 price range, marked by the LINK’s lower trend line of the LINK’s current Rising Channel and the 21-day simple moving average.
Chainlink rebounds after testing its lower trendline support and the 21-DMA at the same time. Source: LINKUSD on TradingView.com
The technical pattern indicated that LINK would continue its return to the channel’s upper trendline. The level is near $ 30 which would be another record high for the Chainlink token.
Chainlink is up more than 100 percent in the first month of 2021, supported by an ongoing euphoria in the altcoin space against Bitcoin’s choppy price action. The second largest cryptocurrency by market cap, Ethereum, for example, set its all-time high earlier this week.
Meanwhile decentralized financial tokens AAVE, UniSwap, Alpha and SushiSwap has also hit record levels, which further refers to a potential capital outflow from Bitcoin to altcoin markets in recent weeks.
The flagship cryptocurrency entered a consolidation phase after hitting a record high of nearly $ 42,000 on Jan. 8. It was down more than 30 percent as a result of a wave of fundamental catalysts including profit-taking among day traders, a stronger US dollar and uncertainty surrounding US President Joe Biden’s $ 1.9 trillion stimulus plan.
Bitcoin has hit a strong support level around USD 30,000, but it is trading choppily above it. That has increased the demand for alternative digital assets, especially in the DeFi space. Data from Dune Analytics shows that the total amount locked into the DeFi liquidity pools has increased to $ 24 billion.
> 8x growth in DEX volume since DeFi summer 🤯
Imagine betting against this trend. I couldn’t be. pic.twitter.com/oW6oHvVs2Q
– jonathanjoseph.eth (@jonathanjoseph) January 23, 2021
Chainlink is taking advantage of the DeFi craze. Although the rally has risen even more due to Grayscale Investments. The New York-based asset manager has included six more trusts in its portfolio, including LINK. It increased Grayscale’s potential to collect LINK tokens in the future.
Link to $ 50?
Michaël van de Poppe, an independent market analyst, claimed that LINK’s growing market cap versus Bitcoin could have it testing $ 50 in the second quarter of 2021.
“Chainlink is going according to plan here,” he said. “Rejection in a very important area of resistance, which leads me to assume that we are consolidating a bit here. Then, in April or something, we’ll see a full rally of crypto with LINK $ 50 + goes into the next impulse wave. “