Chainlink Breaks Out of Consolidation: Will the LINK Price Make It to $20 Following the Smart NAV Pilot Program?

Another Bounce For Chainlink Eyes 40% Hike in LINK Price

The post Chainlink Breaks Out of Consolidation: Will the LINK Price Make It to $20 Following the Smart NAV Pilot Program? appeared first on Coinpedia Fintech News

Bullish sentiments have flown within the crypto space as the star crypto, Bitcoin, has displayed some strength. Altcoins have also remained elevated since the previous trading day, with memecoins leading the race and now popular tokens receiving some attention. After remaining in extreme bearish consolidation, Chainlink’s (LINK) price has triggered a bullish breakout, with a 20% rise from the bottom. 

One of the main reasons for the jump is speculated to be the latest update of the platform. Chainlink has completed a pilot program named Smart NAV Pilot that aims to accelerate fund tokenization. It, along with DTCC, has completed tests with JPMorgan, Templeton, BNY Mellon, and other major US banks.

With this, the token has regained the attention of the whales, who have started accumulating at a greater pace. As soon as the price dropped from the highs, whale accumulation began to drop. Moreover, the plunge that occurred in the first fortnight of April attracted the whales back to the platform, where they began to accumulate. Currently, the recent price action has elevated the accumulation level to a 6-month high.

The data from the santiment shows there are now 564 whales who are holding more than 100K LINK tokens. The levels have risen by over 5% in just 5 weeks, which may be fueled by a huge surge in social dominance. Therefore, if social dominance cools down and FOMO takes over the rally, a fresh bullish swing could follow, elevating the levels beyond the current highs. 

The LINK price was stuck in a long consolidation phase below $10 for more than 20 months before skyrocketing above $16. Unfortunately, the token faced stiff resistance from bears after reaching new yearly highs above $22. Since then, the price has been trading within a predetermined range of $13 to $16. However, the bulls appear to have run out of steam following the recent upswing, so breaking the crucial resistance at $16.5 may not be as easy as expected. 

Soon after the breakout, the bulls found a strong base at the newly formed support zone between $13 and $13.7. Although the price has initiated a fresh upswing, it is struggling to reach the key resistance level at $16.5. Besides, the strength of the bulls is swelling, as seen in the bull-bear power. Alongside this, the RSI is trying hard to break the upper trend line, which may pave the way for the token to test the upper threshold. 

The technical aspects point towards the Chainlink (LINK) price maintaining an ascending trend, which could elevate the levels beyond $18. However, securing the levels above $20 may not be an easy task for the LINK marines. 

from Coinpedia Fintech News