Chainlink (LINK) Price Analysis - March 30, 2021
Chainlink's liquidity is showing a downward trend. However, there is still a possibility of LINK touching its all-time high of $36.89 in the short term. Here's why.
Due to its decline in market value, Chainlink has been pushed out of the list of top ten cryptocurrencies by CoinMarketCap. Chainlink (LINK) currently is ranked No.11 with a market cap of $11,703,931,788.
However, it still provides generous returns for investors, which has risen by 1,285.5% within one year.
Although Chainlink is down nearly 24% from its all-time high (ATH) of $36.89 on February 20, the decline is not that steep. Currently, LINK's price has rebounded somewhat. At the time of writing, LINK is trading at $28.13.
Source: Glassnode
According to Glassnode, Chainlink's liquidity is showing a downward trend. The number of exchange deposits for LINK has reached a four-month low. This indicates that there are fewer and fewer investors who have bought LINK recently.
Low trading volume may not guarantee that the LINK price trend develops in a direction consistently. However, the lower liquidity also proves that the sellers have insufficient power.
The strong rise of Bitcoin will help propel Chainlink's price higher. It still has the possibility of touching its all-time high (ATH) as most technical indicators show signs of bullishness presently.
Chainlink (LINK) Price Analysis
Source: LINK/USD Daily via TradingView
Judging from a daily candlestick chart above, Chainlink (LINK) shows the strong selling pressure in mid-March, which caused the cryptocurrency asset's value to fall to a low support level of $23.73 on March 24. However, LINK’s price has shown a bullish momentum and pushed up the price. Does this mean that the LINK downtrend is over?
Investors should not take this lightly. Although the MACD indicator has almost bonded below the zero axes, which is a signal of forming a bullish crossover. But the current LINK’s price has not yet stood firm 20-Exponential Moving Average(20-EMA) of $27.86.
If LINK/USD could stand firmly at the 20-EMA today, then it is likely to trigger a large number of buying orders, which will push up the price to the resistance level of $31.85 in the short term. If LINK/USD can overcome this level of resistance, it will enable the altcoin to test its all-time high of $36.89.
The stochastic relative strength index indicates that this altcoin has remained more or less near the equilibrium zone of the 50 marks and has not fallen into the oversold zone. The upward trend of the indicator indicates that the current price level is supported by the buyer.
Conversely, If the bulls fail to defend 20-EMA, the LINK/USD currency pair may fall from this level to test the support line of $24.87.
Image source: Shutterstock
