- LINK price records new all-time high on January 25, 2021
- LINK/USD pair is trading at $24.0420 on popular exchange Bitmex
- LINK/USD weekly RSI forms a bearish signal
Chainlink has been the best performing altcoin throughout the past week. The entire cryptocurrency market remained gloomy after the Bitcoin price sunk under the $30K on January 21. However, the Chainlink price remained resilient and displayed resilience throughout the week, surging by over 20 percent; and on January 25, the oracle token reached a new all-time high at $25.9070. The token has since pulled back, and as at the time of writing, the LINK/USD pair is trading at a market price of $24.0420.
The LINK/USD pair opened the day trading at $24.9060 before hitting a daily low of $23.9360. The daily high stands at $25.9070, which is also the current LINK/USD ATH. The seventh-largest cryptocurrency has surged by over 1.70 percent over the past 24 hours, with a trading volume of over $3.892 billion over the same period.
Ten days ago, the LINK/USD pair broke past its previous all-time high. However, the cryptocurrency pulled back to confirm the $20.0 support zone. After establishing firm support near $20, the LINK/USD pair advanced to hit a new all-time high of $25.9070 today. After retesting the break-out price level, a long wick diminishing candle indicated the increased buying pressure. Besides, it also confirmed the support zone located at $20.0.
According to a popular crypto Twitter trader, the latest rally to hit a new ATH has resulted in a vast bearish divergence on the weekly RSI. The divergence stretches from last year’s high of $20.0 to the new ATH.
Besides, there is an ascending trendline concurring with the bearish signal. The trendline has acted as the peak for every bullish rally for the last three years. Notably, a bearish divergence occurs when an asset hits a higher high, and simultaneously, a technical indicator makes a lower low on the same timeframe chart. This means that the buying pressure is lesser than the previous high.
Even with the substantial bearish divergence on the weekly RSI, technical indicators are bullish on LINK/USD. The relative strength index exceeded the 70 mark. The MACD is increasingly bullish, and the Stochastic oscillator formed a bullish cross. If Chainlink’s price corrects in the near-term to invalidate the bearish signal on the weekly RSI, it will verify the rally’s progression.
Nonetheless, as long as the Chainlink price maintains to trade above the $20.0 support zone, the bullish trend will possibly continue.
The recent rally by Chainlink is believed to be instigated by newsflow. The rally gathered momentum after Grayscale’s chief executive revealed through Twitter of imminent development. The majority of people believe the development has something to do with Chainlink. Although Michael Sonnenshein’s tweet was unclear, many believe Grayscale is about to announce another altcoin investment vehicle. Notably, rumors about a Grayscale Chainlink Trust have been spreading online lately.