Chainlink is about to smash SMA100 daily for the first time since November 2019
- Chainlink has gained over 18% amid strong bullish momentum.
- Project developments support the positive sentiments around LINK.
Chainlink (LINK) is the best-performing altcoin out of top-20 on Wednesday. The coin has gained over 17% of its value in recent 24 hours to trade at $2.2790. The asset with the current market capitalization of $792 million has been trading most actively on Coinbase with over 90% of all trading volumes coming through this US-based exchange. Notably, the price is growing amid high trading volumes and expanding volatility. According to Cryptocompare service, LINK's 7-day volatility surpassed 32% on January 7, which is the highest level since December 18.
What is Chainlink
Chainlink protocol allows cryptocurrency smart contracts to use external resources like data feeds, APIs and others. According to the information, provided on the official website, Chainlink provides a reliable connection to the external data that helps maintain the overall reliability of the inputs and outputs used by smart contracts.
On January 3, Chainlink announced a new partnership with 2key network:
Chainlink to become a network integrator on @2keyNetwork! Users leveraging 2key's "Smart Link" tech can use Chainlink oracles for trustless growth campaigns that pay participants based on decentralized sourcing of market prices & ad performance data.
2key is a layer-2 scalability solution and creator of Smart Links that will incorporate Chainlink’s oracle technology to pay rewards to the participants.
Chainlink's ball starts rolling
The announcement pushed LINK's price higher, while overall bullish sentiments on the cryptocurrency market helped the coin to smash an important resistance at $2.0 reinforced by SMA50 (Simple Moving Average) daily. Once this breakthrough was confirmed, the upside momentum started gaining traction. At the time of writing, LINK/USD is testing SMA100 daily at $2.3. We will need to see a sustainable move above this handle for the upside to gain traction with the next focus on psychological $2.5 and $3.0.
On the downside, the initial support is created by the above-said SMA50 daily. It is closely followed by a confluence of SMA levels on 4-hour charts clustered around $1.90. If this zone is cleared, the coin will reverse the gains and switch back into consolidation mode.
LINK/USD, daily chart
Author
Tanya Abrosimova
Independent Analyst
