Chainlink Technical Analysis: LINK hits new all-time high on breaking $20

Chainlink rally stalls at a new yearly high but buyer interest remains high.
LINK’s network growth spikes, suggesting that the rally could hit higher highs.

Chainlink’s rally has been unstoppable over the last week. The journey to a new all-time high has been enriching since the year started—moreover, the break at $20,000 allowed buyers to aim for a new high, hitting $22.8.

Chainlink on the verge of a correction

The live feed oracle token is exchanging hands at $22 following a minor rejection from the new highs. As highlighted by the Relative Strength Index, overbought conditions suggest that LINK may continue to retreat toward $20. If this support fails, the 50 Simple Moving Average, slightly above $18, will come in handy.

LINK/USD 4-hour chart

Santiment’s “Daily Active Addresses” model shows that the number of new addresses created on the Chainlink network topped-out on January 15 at 8,203 addresses per day, calculated on a 30-day trailing average. If the newly created addresses continue to rise, it will be a bullish signal for Chainlink. Moreover, the project as a whole is likely to receive more attention, increasing industry adoption.

Chainlink network growth

A new all-time high is in the cards if Chainlink holds above $22. Moreover, a period of consolidation may come into the picture based on the Relative Strength Index leveling motion.

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