The ChainLink price has gained 50% in eight consecutive positive trading days. But can the LINK rally take the price even higher?
Chainlink is trading at $19.90, a gain of 11.20% in the last 24-hours and 44% over the last seven days.
For the first time in a while, cryptocurrency investors have something to cheer for. Bitcoin’s ascent to $40,000 has sparked almost universal gains in altcoins.
As a result, Chainlink’s market cap has increased by $2.6 Billion to around $8.7b, ranking the LINK Token as the 12th-largest cryptocurrency. However, if the ChainLink price sustains its currency bullish trajectory, it may soon hurdle 11th-ranked Litecoin.
The returning confidence could not have come at a better time for the ChainLink price.
On the 20th of July, LINK was forging a new 6 month low and changing hands at $13.29. However, eight back-to-back daily advances have not only stopped ChainLink from breaking down but now forced a breakout on the upside.
The daily price chart shows LINK completed a clean bullish break of the trend line resistance at $17.13. Furthermore, the price is now above the 50-day moving average at $18.18.
Additionally, the Relative Strength Index is trending higher and supporting the rally.
A continuation of the climb should initially target the $21.48 high of the 7th of June. Although, the bulls will now push for a test of the 200-day average at $27.60. However, the 100 DMA at $27.21 adds to the robust confluent resistance above $27.00.
Therefore, the price is likely to be rejected at least on the first visit, should it come. On the flip side, if Chainlink clears $27.60, the bull case increases emphatically.
This positive outlook stays valid as long as LINK remains above the descending trendline at $17.13. Should the price lose this support, the outlook swings back to negative and indicating a failed breakout.
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