Chainlink Hits All-Time Highs, LINK Bulls Enter Price Discovery
Decentralized oracles token Chainlink continues to gain momentum now that its price has reached new all-time highs.
- Chainlink's native token has seen its price surge by more than 55% in the past three days.
- LINK's impressive rally has pushed it to new all-time highs, and bulls may ride the momentum further.
- If buy orders continue to pile up, LINK could rise to $25 or higher.
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Chainlink has just hit all-time highs and entered price discovery mode. Despite the bullish move, a particular technical indicator suggests that LINK’s new uptrend has just begun.
Chainlink Rises to New All-Time Highs
Chainlink made headlines following LINK’s impressive price action over the past three days.
As buying pressure skyrocketed, the decentralized oracles token saw its market value surge over 55%. It went from a daily open of nearly $14.00 on Jan. 13 to make a new all-time high of $21.70 today.
Despite the massive gains posted within such a short period, it seems like LINK has more legs to go up.
Based on the parabolic stop and reverse, or “SAR,” the downtrend that began following Jan. 10’s market crash reached exhaustion. Now, as the stop and reversal points moved below Chainlink’s price, its trend’s direction changed from bullish to bearish.
Historically, the stop and reversal system has been highly effective in determining the course of this altcoin. The last two times the parabolic SAR flipped bullish within the daily chart, LINK’s price surged by 38.50% and 68.50%, respectively.
A further spike in buy orders could push Chainlink’s market value into higher highs, especially now that it has entered price discovery mode.
By measuring the Fibonacci retracement indicator from mid-August 2020’s high of $20.30 to late September 2020’s low of $7.30, multiple bullish targets can be defined.
If Chainlink manages to keep the $20.30 level as support, it will likely aim for the 141.4% Fibonacci retracement level before it surges towards the 200% Fibonacci retracement level. These critical areas of interest sit at $25.70 and $33.30, respectively.
Conversely, a daily candlestick close below the underlying support barrier will trigger a correction towards the 78.6% Fibonacci retracement level at $17.50 before the uptrend resume.
Such a steep pullback would be catastrophic for overleveraged traders, but it will allow sidelined investors to get back into the market. A fresh influx of capital will help propel Chainlink towards $25 or higher.
Disclosure: At the time of press, the author held Ethereum and Bitcoin.
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