Shocking many traders, Chainlink (LINK) continued to rocket higher after our last update on the cryptocurrency. Published about two hours ago, the altcoin had passed above $7.00 for the first time ever.
Now, LINK is trading at $8.21 — touching $8.50 just minutes ago as the asset has truly gone parabolic.
Chart of LINK's price action over the past two days from TradingView.com
This means that over the past 24 hours, the asset is up by more than 35%. And over the past two days alone, it is up by around 40%.
A Surge Built on LINK Shorts
Partially fueling this rally seems to be a surge in liquidations of traders that were holding a LINK short.
A cryptocurrency trader shared the graph below in the midst of the ongoing upswing. It shows that over the past month, there have been dozens of millions of dollars worth of Chainlink short positions liquidated. The biggest liquidation ever took place today.
Graph of LINK short position liquidations shared by trader "Hsaka" (@HsakaTrades on Twitter).
What’s Next For Chainlink?
Investors are trying to digest what comes next for LINK. After rallying dozens of percent in a few days and hundreds of percent in a few months, there’s much to think about.
On-chain analyst Cole Garner shared the chart below just an hour ago. He noted that LINK closed “its first candle above the log trendline in a full year.”
The last time this happened, the asset temporarily went exponential, then suffered a strong retracement once the buying volume subsided.
$LINK closed its first candle above the log trendline in a full year.
Last time that happened it went parabolic. Is this a repeat? pic.twitter.com/Hac2hemFTl
— Cole Garner (@ColeGarnerBTC) July 13, 2020
Should history repeat, Chainlink will continue to rally in the days ahead.
Garner’s comment comes a few days after he shared that there are clear on-chain and exchange metrics indicating LINK will continue higher. Some of those are as follows:
- LINK’s “mean dollar invested age” is curling down, suggesting an influx of new money. Every time this metric has done so, the asset has proceeded to rocket higher.
- The number of LINK held on exchanges is dropping, meaning there is less potential sell pressure.
- On-chain Chainlink volume is not even close to previous historical highs.
- And more.
As of this article’s publishing, LINK is trading for $8.02. This means that there has been a slight retracement since the all-time high established just minutes ago.
Featured Image from Shutterstock Price tags: linkusd, linkbtc Charts from TradingView.com Chainlink (LINK) Just Crossed Above $8 — Why Some Say the Rally Isn't Over