Chainlink has been one of the best performing cryptocurrencies in 2020 after the overall market crash in March, the digital asset managed to not only recover but establish a new all-time high at $20, after a colossal 1,500% rally.
On August 16, after touching $20 on several exchanges, the total market capitalization of Chainlink hit $6.7 billion surpassing Bitcoin Cash and Litecoin and positioning itself at number 5 on Coinmarketcap.
One of the main factors behind Chainlink’s price growth is the number of partnerships and services or products utilizing the digital asset. In June 2019, Google Cloud announced that it would use Chainlink to make it easier for developers on the platform.
There are currently over 74 different blockchains that have integrated LINK and a total of 315 integrations overall.
Chainlink Price Prediction: Bulls aim for $22.72 if this critical resistance level is broken
It seems that Chainlink has established a long-term ascending parallel channel on the daily chart. The lower trendline has been a robust support level for LINK and continues holding the price so far.
Using the height of the pattern we can determine potential price targets on both sides. A breakdown below the support trendline would quickly drive Chainlink’s price towards $8.3.
On the other hand, climbing above the 12-EMA and the 26-EMA should be enough to push LINK towards the upper boundary of the pattern at $16.8.
This critical resistance level at $16.8 is the key for the digital asset. A breakout above this point would push Chainlink’s price towards the price target of $22.72, which is a new all-time high.
Most technicals remain in favor of the bulls on the daily chart, suggesting investors to buy in the short-term. However, on the 4-hour chart, it seems that 90% of all significant moving averages have turned bearish and are suggesting to capitulate which adds credence to the bearish outlook mentioned above.
