For the past few days, the Chainlink price has been on a strong bullish run. It has been hovering over the critical $30.00 level for the past three days. The LINK token has jumped more than 13% in the last seven days, ranking it among the best performing cryptocurrencies. Other high-yielding cryptos include Polkadot, Avalanche, Tron, Cosmos, Elrond, Tezos, among others. LINK has a total market capitalization of $14 billion, ranking it as the 13th most valued digital asset in the world.
Why Is LINK Rallying?
Chainlink is a decentralized oracle network that connects smart contracts to the outside world. It provides price and events data collected from on-chain and real-world sources. The LINK token does not run on its blockchain but can run on different blockchains simultaneously.
Just like most altcoins, LINK’s current performance is linked to the overall crypto performance. The cryptocurrency market has been struggling to rebound for the past few days. The global crypto market capitalization has jumped to $2.20 trillion.
The surge in demand for non-fungible tokens (NFTs) has also played a key role in LINK’s surge. Chainlink and its products have played a critical role in helping platforms and projects maintain their NFTs and increase their effectiveness. Cell Land, an NFT-based advertising billboard, recently announced the integration of Chainlink price feeds in a bid to stabilize the pricing of its NFTs.
Chainlink Price Technical Analysis
The daily chart indicates that the Chainlink price has been treading on choppy waters since September. At the time of writing, it was up 1.43% at $31.11. Along the way, it has managed to move above the 50, 100, and 200-day moving averages. This is usually considered a bullish sign.
In the near term, I expect the LINK price to extend its bullish run as bulls target the next resistance at $40.00. On the flip side, this view will be invalidated if the price moves below the 50 DMA.