Chainlink price started the week by bouncing off the 200-day moving average and is currently trading at $7.7, up by 11% from the 200 MA. The price has been trading within the $5.5-$7.7 price range since May 2022. The recent release of the CPI data by the US increased volatility in the crypto market, but the buying pressure was not sustainable, and prices quickly fell back to their pre-CPI levels.
It is also important to note that Bitcoin’s failure to break above the $30,000 level is a significant headwind for altcoins like Chainlink. We can only hope for any significant momentum toward the upside if Bitcoin breakouts above $30,000.
Chainlink is making the headlines due to the increase in developer activity which can be viewed on GitHub. This is creating strong tailwinds for Chainlink price, which is also building a cross-chain protocol to move funds between different L1/L2s.
Chainlink network recently launched Cross-Chain Interoperability Protocol (CCIP) on their Mainnet. The primary purpose of this protocol is to facilitate a communication system between different blockchains. CCIP has already gained popularity as leading DeFi lending platforms like Aave and Synthetix have adopted it.
The price chart for LINK/USDT shows that the price has been trading between $5.5-$7.7 since May 2022. The price is currently trading 5.5% above $7.325, the midpoint of the range.
If the price continues to trade above the midpoint of the range, there is a strong chance for the price to test the range high at $9.7 in the coming weeks. This bullish Chainlink price prediction will be invalidated if the price breaks below 200 MA. In that case, the price might head for a retest of the 200-MA, which lies around $6.68.
I’ll keep sharing my updated LINK price analysis in my free Telegram group, which you are welcome to join.
This post was last modified on Aug 10, 2023, 16:56 BST 16:56