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Chainlink (LINK) near a new all-time high

June 24, 2020

Chainlink (LINK), an intelligent blockchain network for contracts, is approaching its all-time high after breaking Altcoin earlier today and has risen 11% at the time of writing.

The altcoin hit a record high of $ 5.10 in July 2019, before falling to $ 1.35 during a market correction on Black Thursday, March 12. LINK has gained 33% in the past two weeks. If the price exceeds its previous all-time high, there is room for price determination.

Daily performance of the cryptocurrency market. Source: Coin360

Chainlink (LINK) near a new all-time highChainlink (LINK) near a new all-time high

Daily performance of the cryptocurrency market. Source: Coin360

The three factors likely to have triggered the LINK surge are: Bullish Action on the Ether (ETH) price, LINK’s bullish technical structure, and the team’s recent connection to China’s national blockchain service network.

Ether Boost pushes altcoins higher

In the last 48 hours, the price of ETH rose by almost 9% from $ 227 to $ 244. This nocturnal hike resulted in Tezos (XTZ) and LINK recovering after a week of side trading.

Both XTZ and LINK recovered three digits last year, while many cryptocurrencies fell between 50% and 95% of their all-time highs over the same period.

One-day chart for the LINK / USD pair. Source: trade view

One-day chart for the LINK / USD pair. Source: TradingView

According to Cointelegraph Markets and CoinMarketCap, LINK is now only 3.37% from its all-time high. Actually, Most stable coins and packaged assets haven’t dropped more than 10% from their all-time highs, while major cryptocurrencies like Bitcoin (BTC) and Ether are very far from their all-time highs.

A favorable technical structure

The term “pricing” is often used when the price of an asset exceeds its record value. That is, when an asset is in this phase, it is difficult to determine where its next cap will be, and this opens the market to speculation.

When the price of a cryptocurrency approaches a record high, it tends to show significant volatility. Sellers try to avoid price discoveries while buyers try to move forward.

Cointelegraph employee Michael Van de Poppe said when LINK remains above $ 4.30, the probability of seeing a new all-time high will increase. In private comments, Van de Poppe said:

LINK is still trading with a very bullish construction. The $ 4.70 to $ 5.00 region has acted as resistance several times, making it likely that a breakthrough will occur in this case. A key area to maintain is the $ 4.20 to $ 4.30 support level. If this continues to be support, I expect a new all-time high for LINK. I wouldn’t be surprised to see a hike in the region from $ 6.50 to $ 7.00.

Another factor contributing to the rise in the LINK price is the current stability of the Bitcoin price and a sustained recovery in ether.This would likely result in additional buying pressure on LINK.

A new partnership promotes the positive mood

On June 23, Chainlink announced that China’s National Blockchain Services Network (BSN) is using Chainlink’s oracle network to process out-of-chain data.

The team said::

“China’s National Blockchain Services Network (BSN) integrates Chainlink as a preferred oracle network to enable BSN systems to access data outside the chain. Within the scope of this cooperation, IRIS Network and SNZ Holding will also contribute to technical integration.”

The announcement coincided with the abrupt rise in LINK’s price during the day and strengthened investor confidence in the short-term trend of the asset.