The Chainlink price is one of the top performers in the top 20. As of writing on Jan 15, the token is trading at $18, less than $2 around its all-time high. This week’s gains propelled the LINK price to new 2021 highs, gains versus the USD, ETH, and BTC.
On the last day of trading, the LINK price is up double-digits versus BTC and ETH, slightly gaining against ETH, which is also flirting with its all-time high.
Accompanying this surge is a notable spike in trading volumes on the last day of trading. LINK participation is up a massive 226 percent to $3 billion from the over 165.3 million LINK tokens traded.
Chainlink (LINK) Price Overview
As mentioned before, the LINK/USD price only trails Polkadot (DOT) on the last day of trading. It is also around its all-time highs of $20.
Consequently, traders are watching out this sell wall. They are keeping tabs on whether the current breakout will spark FOMO, building enough momentum for the LINK/USD to print a new-all time high in Q1 2021.
The breakout level at $16 is the immediate buy wall for traders. Considering the high trading volume and a bull bar printing following the close above Dec 2020 high, odds of buy trend continuation mirroring H2 2020 gains remain high.
If buyers overcome bears, the first target will be $20. However, if the trend is stronger and buyers break above the 4-month resistance printed in August 2020, the LINK/USD price could rally to around $30. This is the 1.618 percent Fibonacci extension level of the H2 2020 trade range.
Chainlink (LINK) Market Movers
Chainlink is a blockchain-agnostic, decentralized oracle system linking smart contracts with vetted and communally approved real-world data. The platform is the most dominant, judging by the number of partnerships and DeFi dApps using the protocol.
The latest to integrate Chainlink is the stablecoin issuer, Paxos, which holds a New York Trust charter.
Their goal, as per reports, is to make asset-backed tokens more accessible in decentralized finance. Paxos’ tokens are backed by public and private assets, all of which are audited, forming part of their reserves.
Accordingly, two of their main tokens, Paxos Standard (PAX) and Paxos Gold (PAXG), are now available in the protocol’s oracles.
Additionally, Neutrino, a multi-asset protocol based on Waves, is also integrating Chainlink’s Proof of Reserves. This now enables users to access automatic on-chain audits of reserves backing the USDN.
Chainlink Price Prediction
The protocol plays a critical role in DeFi, safeguarding financial dApps from certain attack vectors. Hence, with growing TVL, LINK prices may follow suit.
From the daily chart, the LINK/USD is trading within a bullish breakout pattern above Dec 2020 highs of $16.
As long as prices steady above this level, every low is technically a buying opportunity. With increasing participation levels supporting the breakout, traders can, in the medium-term, remain optimistic of a surge to $20—the four-month resistance level marking Aug 2020 highs.
Further gains above this may open up the LINK price to $30 in the medium term. This is the 1.618 Fibonacci extension level of the H2 2020 trade range. However, the pace of this expansion will again be determined by the underlying momentum, a factor highly dependent on trading volumes.
A retracement below $13 invalidates this bullish overview.
Chart courtesy of Trading View
Disclaimer: Opinions expressed are not investment advice. Do your research.
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