Top-Performing Digital Asset ChainLink (LINK) See 64% Gains In The Last Thirty Days
ChainLink (LINK), the token for a decentralized oracle service, has broken out into a renewed uptrend, gaining 64.2 percent in the last thirty days. This breakout was in spite of bitcoin’s modest gains of just 16.4 percent over the same period.
The biggest increase for the cryptocurrency occurred on April 16, gaining 11 percent right after the bears pushed the price below its first support level at $3.45.
The rally put the coin into a renewed upwards trajectory, confirmed by its long-term moving averages. ChainLink broke above its 100-day and 200-day simple moving averages on April 6, which then turned them into additional support levels. Prices bounced off these zones on April 11.
There are two factors that could influence ChainLink’s price moving forward. The Relative Strength Index (RSI) could peak into overbought territory, which may leave bulls feeling uneasy about placing further bids. At present, the RSI is already very close to being overbought, so in the short-term, we could expect to see a horizontal trading movement to balance the cryptocurrency’s quick ascent.
The second factor is the coin’s contracting trading volume which signals indecision from the market. At the same time, bitcoin has also suffered from liquidity issues as part of its recovery from the March 12 market crash. Traders could, therefore, have a reduced appetite for entering risky positions during the ongoing coronavirus pandemic as safe havens such as gold continue to make higher highs.
For ChainLink, a declining trading volume sets the coin up for a strong price movement that could occur in either direction. The lower the volume becomes, the more sensitive the price is to sudden changes. Given that the trend has been upwardly stable for the last several weeks, it’s likely that we could see another sharp rally that could consolidate the gains it has made since the end of March.