The Polkadot and Chainlink prices have been in a strong rally recently. In the past 24 hours, Polkadot price has surged by more than 20%, bringing its market capitalization to more than $18 billion. This makes it the fourth-biggest cryptocurrency in the world after Bitcoin, Ethereum, and Tether. In the same period, the Chainlink price has risen by more than 2% bringing its market value to more than $9.92 billion.
What happened: The overnight rally of both DOT and LINK was mostly because of the overall performance of digital currencies. In fact, other currencies like BTC and ETH rallied, pushing the total market cap to more than $1.12 billion. Investors are generally optimistic that there is a strong demand in the crypto industry after the price of Bitcoin managed to hold gains above $30,000.
For Polkadot, investors believe that the ecosystem is becoming a major competitor to Ethereum. In the past few days, the total value locked in DeFi projects has risen to more than $32 billion. While most of these are built on Ethereum, those built on Polkadot have also done well. In fact, tokens of projects like Kusama, Edgeware, and Akropolis have jumped by more than 10%.
At the same time, Chainlink price has jumped because of the rising demand for connecting smart contracts to the outside world
On the daily chart below, we see that the Chainlink price managed to break-out above the previous resistance at $19.96 recently. A closer look shows that the currency had formed a cup and handle pattern. The upswing is also being supported by the 15-day and 25-day exponential moving averages.
Therefore, in the long term, I suspect that the LINK price will soar to about $32. The distance between the lowest and top part of the cup and between the top of the cup and $32 are similar. This prediction will be invalidated if the price manages to fall below $17.05.
A look at the four-hour chart shows that the Polkadot price was forming a bullish flag pattern before the current breakout. This pattern is shown in blue. The currency is also being supported by the short and medium-term moving averages. Therefore, in the near term, the price will likely climb to about $25. The invalidation for this prediction will be if the price falls to $14.
