Chainlink adds 10% in a breakout, LINK/USDT May retests $30

In the past 24 hours, DeFi tokens have been leading the charge, posting double-digit gains week-to-date.

Chainlink is one of them.

After discouraging lower lows, LINK bulls are flowing back, forcing the token above crucial resistance levels.

Chainlink Market Performance

There might be fundamental reasons in play too.

Chainlink anchors DeFi, connecting protocols with reliable, external, tamper-proof data. If anything, the decentralized nature of Chainlink nodes has averted deliberate flash loan attacks.

Accordingly, given how instrumental Chainlink is to DeFi, it isn’t a surprise that LINK is reaping maximum benefits from expanding the former.

LINK is up 10 percent week-to-date at the time of writing, adding four percent on the last trading day. There could be more room for gains since LINK prices are trading within a bullish breakout pattern clear in the daily chart.

For the first time since mid-May 2021, LINK prices are now trading above the middle BB—a flexible resistance line.

What’s more? There is a pickup in momentum, suggesting demand in lower time frames, all building for a solid case for a buy trend continuation.

Technically, LINK/USDT bulls ought to overcome $20 for buyers to double down, buying the confirmation of the middle BB breakout and cancellation of June 21 bears.

The build-up to this creates an exciting proposition for traders who are upbeat.

Add to the Chainlink Bag, LINK Trading Volumes Surge

One trader by the handle, Youngcryptowolf, thinks this is the best time to add to the Chainlink bag.

#Chainlink: $LINK | $USDT

Adding a bag here👀

despite sentiment, price action looks good👌 pic.twitter.com/uUeyqnadhU

— young crypto wolf (@youngcryptowolf) July 2, 2021

This is despite the shifting sentiment, which the analyst thought wouldn’t be a significant concern since price action looks good.

Less than a week later, LINK/USDT prices are pulsating higher, breaking barriers as demand picks up.

Accompanying these gains is increasing demand for LINK. Trading bots are picking out block purchases of LINK, pushing trading volumes higher—revealing activity from buyers and demand for LINK.

For instance, on July 6, there was a 16X surge of LINK trading volumes, helping drive prices above the middle BB in the daily chart.

Unusual #volume spike in $LINKUSDT

– 6,929,263 USD worth of $LINK traded in the last 5 mins.
– 16 times the average volume in $LINK – $USDT pic.twitter.com/ZLQXI5ill4

— Volume Alerts (@TraderWisdom) July 6, 2021

Following LINK price upswing, Chainlink’s investor sentiment has been gradually improving. As per tracker, bulls are optimistic, with LINK posting a Galaxy Score of 74/100.

Chainlink has a very strong Galaxy Score™ of 74/100, indicating bullish relative social + market activity vs historical performance.

Price Score: 5/5
Social Sentiment: 3.7/5
Social Impact: 3.4/5
Correlation Rank: 2.7/5https://t.co/dzEYLH26Vs $link #chainlink pic.twitter.com/Mxduc10TA3

— LunarCrush 🪐 Social Intelligence for Crypto (@LunarCrush) July 6, 2021

Compared to historical market performances, social and market activity indicates changing fortunes, which merges well with buyers’ expectations.

LINK/USDT May Break Away to $30 and $52

On Trading View, another trader, Abbas39, says LINK prices are bottoming up, as per price action in the 4HR chart.

Accordingly, although prices are flat-lining, the analyst expects a strong surge above $22.

In this case, LINK could rally towards $34—as projected by the Fibonacci extension level of the last three weeks.

Thus far, LINK prices are inching higher inside an ascending wedge with a flat resistance level at around $20.

In confirming the breakout above the descending wedge in the daily chart, T_V_TreeTrader, on Trading View, expects LINK/USDT price to reach $30 and $52 in the medium term.

Solid higher highs above $20, as aforementioned, will be a base for more gains, reflecting trader confidence after profound losses of May and June 2021.

Technical charts courtesy of Trading View

Disclaimer: Opinions expressed are not investment advice. Do your research.