Chainlink price has been on an uptrend since July 20, 2021. LINK’s total market capitalization is $23.74 billion ranking it the 9th largest cryptocurrency after Dogecoin.
However, Chainlink price was in the red at the time of writing. Most analysts have linked the declines in cryptocurrencies to Bitcoin due to their correlation to the crypto leader. Bitcoin has been struggling to rebound above the $40,000 level. It hit its highest level at $42,500 on August 1, before pulling back. Ever since the coin has been consolidating below the psychological level at $40k.
The sell-off in most altcoins just like LINK has been also linked to the US infrastructure bill. According to the US Senate, to help boost funds for the bill, there will be an increase in crypto tax reporting. The senate seems certain that the crackdown on tax reporting in cryptocurrencies will boost the revenue.
The surging cases of the fatal virus, coronavirus, has had many worried. However, it is a good thing for cryptocurrencies. Most central banks including the Federal Reserve have remained dovish towards hiking interest rates. The Fed stated that it is in no rush to hike its interest rates until inflation stabilizes.
LINK’s Technical Outlook
The Chainlink price has been consolidating above the $20.00 level since the start of August hinting at a bullish trajectory.
It hit an intraday high of $24.355 before pulling back. At the time of writing, it slipped 1.74% to trade at $23.77.
On the daily chart, LINK’s price has been treading above the 25 and 50-day exponential moving averages (EMAs). Its Relative Strength Index (RSI) has been inching higher signaling its bullish trend. However, its RSI was at 68 signaling that the coin was close to overbought.
In the near term, if the Chainlink price surpasses the intraday high, the next resistance level will be at $25.00. On the flip side, a move below the moving averages at $20.00 might push the prices lower to find support at $18.580.