Chainlink price has been in a slow recovery process after crashing by more than 65% this year alone. LINK rose to a high of $7.9 on Thursday morning, which was the highest level since September 30th of this year. It has risen by more than 12% from its lowest level this year. Other top-performing cryptocurrencies this week are Helium, XRP, and Casper.
What is driving LINK prices?
Chainlink has been in an upward trend in the past few days. There has been no major catalyst for this strong rebound. Instead, it is in line with the performance of other popular cryptocurrencies. For example, Bitcoin has risen to about $20,200 while Ethereum has bounced back to about $1,350. Historically, cryptocurrencies like Chainlink tend to move in lockstep with BTC.
Chainlink price has also done well because of the weak US dollar. The dollar index has dropped substantially in the past few days. It has managed to move from last week’s high of about $115 to $110. LINK and other cryptocurrencies tend to have an inverse relationship with the US dollar.
Most importantly, another key catalyst for Chainlink is staking. Staking is a process where people earn returns by providing security to a network. In a recent statement, the developers said that they will introduce staking in the second version of Chainlink’s platform. In fact, the developers have already started running the beta version of this upgrade. Staking could bring more people to Chainlink.
Meanwhile, LINK price has done well after last week’s SmartCon Conference. This was a major event that was hosted by Chainlink. One of the major outcomes was that the developers will now partner with SWIFT, the giant interbank organization.
Chainlink price prediction
The hourly chart shows that LINK price has been in a strong bullish trend in the past few days. In this period, it has managed to move to the 61.8% Fibonacci Retracement level. It has also risen above all moving averages while the MACD has moved above the neutral level. It rose above the important resistance level at $7.8.
Therefore, the path of the least resistance for the coin is to the upside, with the next key resistance level to watch being at $8.23. A drop below the support at $7.6 will invalidate the bullish view.