- Chainlink bullish outlook eyes $13, but first, the 50-day SMA resistance must come out of the way.
- Chainlink continues to expand its price reference feed service in support of the DeFi ecosystem.
Chainlink recently embarked on its upward trend following a period of continued downward price action. Support established at $7.2 assisted buyers to regain balance and control of the price. A reversal from the first week of October has seen the decentralized oracle token step above several key levels like $9, $10 and $11. In the meantime, LINK/USD is doddering slightly above $11 amid a developing bullish momentum.
Chainlink smart contract utility on the rise
Chainlink has become a household name in the decentralized finance (DeFi) ecosystem. A newly launched oracle, BNB/USD, has expanded developers' scope as they can now create more BNB DeFi markets. According to a recent Tweet, Chainlink is "continuously adding new price feeds so developers can quickly and securely build next-generation DeFi products."
Chainlink impending rally to $13
The price reference feed token broke above a descending parallel channel and the 100-day Simple Moving Average. Bullish building momentum is likely to pull the price to higher levels. The only significant obstacle is the 50-day SMA but once broken; it will pave the way for the much-awaited spike to $13.
LINK/USD daily chart
IntoTheBlock's IOMAP model confirms the 50-day SMA resistance level. For instance, the most robust resistance runs from $11.2 to $11.6. Here, nearly 3,000 addresses bought roughly 9.3 million LINK. If bulls gain the strength to push this hurdle into the rearview, Chainlink will quickly rally to $13.
Chainlink IOMAP model
On the downside, it is doubtful that a reversal from current price levels will explore the levels under $10. The model points to the most significant support from $10.22 - $10.6. Here, approximately 6,000 addresses purchased about 34.3 million LINK.
Since the beginning of October, the number of new addresses joining the network has been on a gradual growth pattern, perhaps the fuel behind the impressive price action posted. Unfortunately, IntoTheBlock's "Daily New Addresses" metric reveals a steady drop from roughly 2,000 addresses on October 9 to about 1,600 on October 11. If the decline continues, it may prove difficult for the bulls to support the bullish case to $13.
Chainlink new addresses chart
Looking at the other side of the picture
It is worth mentioning that if the 50-day SMA resistance remains intact, the bullish case to $13 will be invalidated. The decline in the new addresses joining the network could also contribute to the shrinking buying pressure. If the 100-day SMA support is shattered, LINK might resume the downtrend; the pullback could retest the support between $10.2 and $10.6.
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