Chainlink Rallies 9% from $6, LINK Prices Form a Double Bottom

Chainlink Rallies 9% from $6, LINK Prices Form a Double Bottom

Chainlink wasn’t spared the brunt of sellers reading from how the coin performed in the daily chart.

At press time, LINK is up nine percent on the last trading day and break even in the past trading week. On a positive note, there might be pointers to suggest strength given the candlestick arrangement in the daily chart.

DeFi Recovers

The leg up could be fueled by several developments. One of them is the significant role played by Chainlink in DeFi and NFTs.

DeFi TVL is at around $109 billion at spot rates, more than half the November 2021 peaks of over $260 billion.

Considering the trend of the past few months in DeFi, the possible revival and arrest of lower lows could build positively for Chainlink buyers. More DeFi and NFT projects are leveraging Chainlink’s infrastructure, the most notable one being Cardano.

Chainlink Keepers

Apart from adoption, Chainlink is also being refined with the release of Chainlink Keepers.

By late May 2022, Chainlink revealed that over 70 projects leverage keepers to automate time and event-sensitive smart contracts such as limit orders, prediction rounds, and more.

Through Chainlink keepers, developers now have more time to focus on building innovative dApps across the board.

Chainlink Price Analysis

Chainlink price analysis

LINK is up nine percent on the last trading day and down four percent on the previous trading week as per the arrangement in the daily chart. Although LINK bulls are positive, prices are still below the 20-day moving average and a bear breakout pattern formation.

The immediate support line is at $6.20, while a break above the middle BB may draw in more buyers, lifting the token higher. Ideally, a comprehensive close above $8 and the upper range of the recent consolidation could solidify the base for another leg up towards May 2022 highs of $12. This level also coincides with Q1 2022 lows and is, thus, a vital reaction level.

Still, there are more odds of possible bear trend continuation. Despite the confidence, trading volumes are markedly lower than May 11 and 12 bear bars. At the same time, LINKUSDT prices are oscillating within the May 11 and 12 bear range with low trading volumes, which is bearish from an effort versus result perspective. Deep losses below $6 may force LINK to new 2022 lows.

Technical charts courtesy of Trading View

Disclaimer: Opinions expressed are not investment advice. Do your research.

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