Chainlink (LINK) was soaring high in the early European trading session Thursday as traders continued to seek hedge in the cryptocurrency market against a choppy Bitcoin.
The LINK-to-dollar exchange rate surged to $24.9, up 15.16 percent from its intraday opening value. The latest upside appeared near a confluence of supports around the $19-20 price range, highlighted by the lower trendline of the LINK’s current Rising Channel and the 21-day simple moving average.
Chainlink rebounds after testing its lower trendline support and the 21-DMA at the same time. Source: LINKUSD on TradingView.com
The technical pattern indicated that LINK would continue its retracement upward towards the Channel’s upper trendline. The level sits near $30, which would mean another record high for the Chainlink token.
Chainlink has surged by more than 100 percent in the first month of 2021, buoyed by an ongoing euphoria in the altcoin space against Bitcoin’s choppy price action. For instance, the second-largest cryptocurrency by market cap, Ethereum, established its record high earlier this week.
Meanwhile, decentralized finance tokens AAVE, UniSwap, Alpha, and SushiSwap have also notched record levels, further hinting at a possible capital outflow from Bitcoin into altcoin markets in the past few weeks.
The flagship cryptocurrency entered a consolidation phase after hitting an all-time high near $42,000 on January 8. It fell by more than 30 percent on a flurry of fundamental catalysts, including profit-taking sentiment among daytraders, a stronger US dollar, and uncertainty around the US President Joe Biden’s $1.9 trillion stimulus plan.
Bitcoin established a strong support level of around $30,000, but it has been trading choppily above it. That has raised the demand for alternative digital assets, especially in the DeFi space….