Chainlink price rose on Monday, trading at $19.49 at the time of writing with daily gains of 4.4%. The crypto coin has recently been on a strong upward momentum, and has risen by more than 6% in the last week. Nonetheless, it shares much in common with the broader crypto market, having declined by 2.7% year-to-date.
The Chainlink oracle ecosystem is its strongest muscle, and it continues to draw in a large number of institutions. Some of the onboarded major institutions include UBS Bank, Sony, Swift, Vodafone, and Fidelity, among others.
The $20.00 mark has served as a key support level for the last ten weeks, and a return to that level could be significant in triggering a reversal. In addition, LINK price’s Volume Weighted Moving Average (VWMA) is currently at $20.60, and a break past thet level will validate the sustainability of the uptrend. The coin has been forming higher lows for the past week, signaling a bullish undercurrent.
Investors have been cautiously managing their exposure to high-risk assets like cryptocurrencies as concerns mount over the impact of a tariff war ecosystem. That will likely limit the upside for Chainlink price in the near-term. According to analytics site, IntoTheBlock, LINK price has a correlation coefficient of 0.97 with Bitcoin. Therefore, that increases the likelihood of a stronger momentum if BTC price resumes an uptrend.
Chainlink price pivots at $19.32 and the momentum favours the buyers to stay in control above that level. The primary resistance is likely to be at $19.77. However, a stronger momentum will break above that level and potentially test the next resistance at $20.25.
Alternatively, the momentum will shift to the downside if LINK price breaks below $19.32. That could see the first support come at $19.77, below which the upside narrative will be invalid. An extended control by the sellers could potentially test the second support at $20.25.
This post was last modified on Feb 17, 2025, 14:32 GMT 14:32