Reasons for Chainlink Blockchain To Trade Near All-Time High
LINK, the native crypt of Chainlink blockchain, which facilitates smart contracts hosting, is trading near its historical high of $5.10 recorded in July 2019, before plummeting to $1.35 on Black Thursday, a phrase used to indicate the steep correction undergone by market on March 12.
During the past two weeks, LINK has rallied 33% and if the price appreciates further, there is a chance for price to move in uncharted territory.
Three criteria that are believed to be responsible for LINK cryptotoken’s rally are Ether’s (ETH) surge, partnership with China’s national Blockchain Services Network (BSN) and LINK’s bullish technical framework.
In the last 48 hours, price of ETH token rose roughly 9% from $227 to $244. The overnight uptrend drove Tezos (XTZ) and LINK to reverse after a week of range bound movement.
Both LINK and XTZ cryptos had recorded triple digit gains last year when a majority of cryptos have lost between 50% and 95%. LINK, at the time of writing this article, is only around 3% below its all-time high.
As a matter of fact, a majority of altcoins have not declined by more than 10% from their record highs whereas top cryptos such as Bitcoin (BTC) and Ether (ETH) are far below its historical highs.
The phrase ‘price discovery’ is often used when the price of an asset crosses above its historical high. That implies, when an asset enters this stage, it is not easy to forecast the next peak. Furthermore, when the price of a crypto trades near record high, there would be significant increase in volatility.
There will be tough battle between buyers and sellers to gain control. Michael van de Poppe, a Cointelegraph contributor, forecasts that a consolidation above $4.30 will propel LINK to new all-time highs. van de Poppe wrote:
“LINK is still trading in a very bullish construction. The region between $4.70 and $5.00 has been acting as resistance several times, which makes it likely to see a breakthrough in this case. A crucial area to hold is the $4.20-$4.30 level for support. If that remains as support, I’m expecting a new all-time high for LINK. I wouldn’t be surprised with a rally towards the $6.50-$7.00 region from here.”
Another criteria instrumental to LINK’s uptrend is the prevailing stability in the price of Bitcoin and a prolongated uptrend of Ether would probably create further upward momentum on LINK. Notably, Chanlink’s oracle network is used by China’s national Blockchain Services Network (BSN) to handle off-chain info.
The team said:
“China’s national Blockchain Services Network (BSN) is integrating Chainlink as the preferred oracle network to provide BSN systems access to off-chain data. As part of this collaboration, IRIS Network and SNZ Holding will also contribute technical integration support.”
The statement has come at a time when the price of LINK surged, boosting optimism among investors about the near-term trend of the asset.