Cryptocurrency market analyst Michaël van de Poppe has said that Chainlink price is used as an indicator of the price performance of altcoins.
If LINK performs well, the analyst believes it will signal an uptrend for the other altcoins in the market.
“Chainlink is an indicator for the altcoins. If Chainlink does well, then I expect the altcoins to continue moving,” the analyst said. “As long as $16 holds, we’ll see a continuation on Chainlink towards the yearly highs.”
LINK was trading at $18.52 as of 04:43 a.m. EST.
Chainlink Price Analysis
LINK is down 1.6% in the last 24 hours. The current drop is a reversal from the recent gains in the token, with the weekly price increase currently at 10%.
The Smoothed Moving Average is above LINK’s price, indicating a bullish momentum. Therefore, we expect that the price of LINK might rally, possibly driving that of other altcoins in the market.
The bullish sentiment is further confirmed by the Relative Strength Index (RSI) line, which is currently tipping north. This line’s movement shows that buyers are flocking to the market, and more gains might be coming.
According to Van de Poppe, if LINK can hold gains above $16, the next resistance level to break is $21.
“Higher low (on the weekly timeframe) established, and $LINK is likely continuing to $25-30 in the coming months,” the analyst said.
However, with the RSI at 53, the buying pressure remains weak. As such, LINK might drop lower.
The recent gains with LINK have seen the token flip Polkadot (DOT) to become the 14th largest cryptocurrency. LINK currently has a market capitalization of more than $10 billion, according to CoinGecko.
Altcoins Are Headed for Gains
Altcoins have been on an uptrend. The top ten largest cryptocurrencies by market cap have dropped slightly in the last 24 hours. Ether is down by nearly 2% after showing signs of breaking past the $4,000 price.
However, analysts believe the altcoin season is just being cooked and could outperform BTC in the short term.
According to one analyst, the total crypto market cap might surge three times if a potential breakout is past critical levels. The analyst noted that the price might break past this level and trade higher.
Following the approval of both spot Bitcoin and Ether exchange-traded funds (ETFs), the recent bull market saw the formation of a meme coin season. However, most altcoins, led by Ether, barely moved past their previous record high.
If the bull season resumes, with altcoins taking the lead, retailers will flock to the market, and new record highs could be on the way. Next month, we might see the potential trading of ETH ETFs in the U.S., which might trigger the altcoin bull market.
