Chainlink price hit new ATH of $6.85 because of the high network activity of LINK
Chainlink price has reached a new milestone today, recording an all-time high of $ 6.85. A few hours ago, LINK broke the $ 6.57 resistance level and recorded the above record.
LINK/USD 4-hour chart | Source: TradingView
The high network activity is one reason Chainlink price keeps gaining in the crypto markets
Since the beginning of 2020, ChainLink’s network activity continues to thrive, with daily active network addresses reaching a new high of 9,335 on July 8.
$LINK is continuing to see sky-high daily active addresses, indicating just how active the network has been. The four highest outputs in network activity over the past year for #Chainlink have occurred in the past six days. https://t.co/9Vn1WSNKjX pic.twitter.com/1xVMVgfWAV
— Santiment (@santimentfeed) July 10, 2020
The last time activity on the network reached such a high was in June 2019 – the same time LINK reached an all-time high of $ 4.80. Therefore, it can be concluded that activity on the Chainlink network can be used to predict the price movements of LINK.
In a recent analysis of ChainLink, Timothy Peterson and the team at Cane Island explained that LINK users had grown significantly:
“The number of Chainlink users has grown by 17% per month, and the use of ChainLink networks in the future will accelerate the adoption of the token and its price.”
The team also provides a chart that predicts LINK prices will reach around $ 8 by December 2020.
“We can zoom out a bit on the daily LINK / USDT chart courtesy of Tradingview. The chart (below) clearly illustrates how past LINK resistance levels have flipped to become major support levels on a macro view.”
Looking at the history of the daily LINK / USD chart, one can conclude as follows.
January 2018’s all-time high of $ 1.54 eventually turned into reliable support, as seen in September 2019 and the coronavirus crash in mid-March 2020. Meanwhile, the April 2019 all-time high of $ 4.80 was a severe resistance area that tried before the fall of mid-March and could eventually become a new support area on a scale macro.
Volume remains in the green, and the daily indicator has yet to show exhaustion, indicating that LINK could break its all-time new high of $ 6.85. MFI indicates an overbought situation. Therefore, if hodl LINK, you should be cautious.
As with all ChainLink (LINK) analysis, stop loss, and use low leverage. Besides, tracking the price movement of Bitcoin will provide a measure of the fate of the cryptocurrency market.
You can also check Chainlink Price here.
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