While the eyes of crypto observers are firmly on where Bitcoin bulls move next, the Link Marines are marching along at a faster pace.
LINK, the native Ethereum-based token of decentralized oracle provider Chainlink, today jumped by more than 10% and is once again trading above $10 per coin.
Chainlink had been on fire in 2020, at one point rising 1000% in price since the start of the year. But following a nasty correction that erased almost 65% of its capitalization, the token has been up and down since. Today, though, it appears to be on its way to a recovery, now trading above $10 for the first time in more than a week.
On the other hand, despite today’s enthusiasm from LINK traders, the token remains inside a strong bearish channel when looking at the charts. Ever since reaching it’s all-time high of nearly $20 per coin in mid-August, its peaks have been much lower and its valleys are getting deeper as well.
The way it's currently being traded, the cryptocurrency has a chance of rising to $11 before the bearish forces within the market are triggered once again. A break above this line, though, could be a buy signal and point to a trend reversal.
But if Link Marines aren’t able to break through, Chainlink could easily fall back to $8.70 per coin—a support that would undo all the gains of the last three days.
Chainlink traders seem to be following Bitcoin's price movements in their quest to make some sense of their token's behavior. Bitcoin today is above $11,000 per coin for the first time since September 19.
After an announcement from Jack Dorsey’s Square stating that the company has invested $50 million into Bitcoin, the cryptocurrency’s price has jumped considerably. The news clearly stimulated the crypto market as a whole, causing price spikes among the top coins by market cap.
DeFi tokens have been no exception. Chainlink, whose price oracle tech is playing an increasingly important role in the world of decentralized finance, is the top DeFi coin by market cap, according to data from CoinGecko.
And while the last few days have led to market observers questioning whether the DeFi bubble of 2020 had finally popped, today’s price moves suggest there might be some momentum left just yet.
The views and opinions expressed by the author are for informational purposes only and do not constitute financial, investment, or other advice.