LINK’s upward momentum continues for this reason

Chainlink LINK coin recently saw a significant increase in price from $13 to $17.

This analysis examines the factors behind this impressive rise. Focus on the sharp increase in on-chain activity and the simultaneous rise of Bitcoin.

LINK Bullish Outlook Supported by Key Levels

On the daily period, I tested the LINK coin Chain link The upper border of the Ichimoku cloud, which is currently around the $17.41 mark. This test indicates a high level of resistance. A successful breakout above this limit may indicate further bullish momentum.

The Ichimoku Cloud is a tool used in technical analysis to help identify market trends. Here's a little detail:

Cloud: The shaded area on the chart shows potential support and resistance levels.

When the price is above the cloud, it indicates a bullish (bullish) trend. When the price is below the cloud, it indicates a bearish (bearish) trend.

linesThere are several lines in the Ichimoku cloud:

Transfer line (Tenkan): Displays the average price over the last 9 periods (candles).

Baseline (Kijun): Displays the average price over the last 26 periods (candles).

Main extension A and B: They form a cloud and display future support and resistance levels.

Chainlink bounced back to Fibonacci levels, with major support seen at $16.41 (0.236), $15.525 (0.382 level), and $14.09 (0.618 level). Staying above these levels, especially the $15,525 support, will maintain the bullish outlook.

Chainlink vs Bitcoin: LINK price expected to rise relative to BTC

Additionally, LINK/BTC on the daily timeframe has just entered the Ichimoku cloud, indicating a potential upward trajectory. Entry into the cloud is often a harbinger of a price increase, suggesting that LINK could see additional gains compared to Bitcoin.

On a 4-hour time frame, LINK is trading above the Ichimoku cloud against Bitcoin and is currently testing its upper limits. If LINK manages to maintain this position, it supports the bullish outlook. However, if LINK fails to sustain above this level and collapses lower, it could change market sentiment.

The bullish scenario becomes more favorable given Bitcoin's potential rise to $73,000. If Bitcoin continues its upward trend, LINK will likely trade at $19 again in the medium term.

Overall, technical indicators and key support/resistance levels indicate strong upside potential for Chainlink, provided it can sustain above critical levels and capitalize on Bitcoin's bullish momentum.

The recent increase in on-chain activity for Chainlink helped push its price from $13 to $17. This increase in activity is reflected in the sharp increase in daily active addresses, as shown in the chart.

The green line representing active addresses has increased significantly, indicating increased network usage and engagement.

Learn more: Chainlink (LINK) Price Forecast for 2024, 2025, 2026, 2027

Additionally, Bitcoin's simultaneous rise to $72,000 created a favorable macro environment for an increase in Chainlink's price. Bullish momentum in the broader cryptocurrency market, led by Bitcoin, likely contributed to the positive price action seen in Chainlink.

Strategic Recommendations

Bullish outlook:

Key levels to watch are $16.41 (upper edge of the Ichimoku cloud), $15.52 (0.382 Fibonacci level), and $14.09 (0.618 Fibonacci level). These indicators can help you improve your trading strategy.

Although LINK has high potential, diversify your portfolio with other high potential assets to mitigate risk.

Stay informed about Chainlink developments and participate in Community Discussions To get an overview of upcoming projects.