- Chainlink hits another new all-time high as investors look forward to $40.
- The supply of LINK tokens on exchanges continues to wane, suggesting that buying pressure is growing.
- Gains to $40 will be invalidated if LINK closes the day under $35.
Chainlink is pushing for new all-time highs, while major cryptocurrencies like Bitcoin and Ethereum have stalled. The weekend session is yielding for Chainlink following the spike above $30. New record highs have been achieved at $35, confirming recent predictions. Meanwhile, finding higher support is the bulls' biggest priority as it will set the framework for a breakout to $40.
Chainlink breakout is unstoppable
LINK is exchanging hands at $34.2 at the time of writing. The majority of technical levels suggest that LINK is on the path to achieving another high, perhaps hit $40.
For instance, the Moving Average Convergence Divergence (MACD) validates the uptrend by spiking higher above the midline. The recent cross of the MACD line (blue) above the signal line brings a firmer bullish grip to the picture. For now, the least resistance path is upwards.
Chainlink is also trading above all the applied moving averages on the 4-hour chart, including the 50 Simple Moving Average (SMA), the 100 SMA, and 200 SMA. The gap made by the 50 SMA above the other two indicators cement the bulls' influence in the market.
LINK/USD 4-hour chart
Santiment's coin supply on exchanges (as a percentage of total supply on-chain metric measures LINK tokens' supply on exchanges. A consistent drop in this metric highlights the potential increase in buying pressure. The chart below shows that the 225% surge in Chainlink's value over the last seven weeks coincides with LINK's continued supply drop on exchange platforms.
%20[08.07.37,%2014%20Feb,%202021]-637488772352204040.png)
Chainlink supply on exchanges
Looking at the other side of the fence
The Relative Strength Index (RSI) on the 4-hour chart is overbought at the time of writing. This means that the uptrend could be nearing exhaustion as bears prepare to take over control. Moreover, not closing the day above $35 (new record high) would pave the way for selling orders to increase, forcing a breakdown toward the 50 SMA around $27.
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