Chainlink's LINK token saw a strong 11.06% price rally over the past 24 hours, surging from $6.94 up to $7.71. This marks a over one-month high for LINK, capping off a very bullish month for the cryptocurrency.
Trading Volume Explodes Higher
Alongside the price jump, Chainlink's 24-hour trading volume skyrocketed to over $1.45 billion. This is nearly 4X higher than the average daily volumes throughout most of July, signaling a huge surge in trader interest and activity around LINK.
Bullish Technical Picture Across Timeframes
Examining Chainlink's charts, the technical outlook has turned decisively bullish across short and long-term timeframes. The price has broken out above its 20, 50 and 200-day moving averages and shows bullish crossover signals on key indicators like the MACD.
Additionally, RSI is approaching overbought levels above 70, indicating the powerful momentum behind this move. This confluence of bullish technicals points to further near-term upside for LINK.
Strong Longer-Term Trend Intact
Zooming out, Chainlink has been in a clear uptrend throughout 2022 and 2023 so far. LINK has gained 45% over the past month and 12% over the past 6 months. This affirms the altcoin's long-term bullish trajectory driven by strong project fundamentals.
Chainlink remains a top platform for blockchain oracles and real-world data integration. This use case will only grow in importance over time, underscoring the long-term investment case. Expect further upside as adoption increases.
Prediction: Rally Towards $10 in Near-Term
Given the overwhelmingly bullish technical and fundamental factors, my prediction is that LINK will rally towards the key $10 price level in the coming weeks. This would mark a nearly 30% gain from current levels.
Look for potential brief periods of consolidation and profit taking that could present solid re-entry opportunities on any dips. But the path of least resistance for Chainlink appears higher in both the short and long-term.
Is Chainlink's Rally a Positive Sign for the Crypto Market?
Chainlink's 11% breakout rally flies in the face of recent weakness and uncertainty in the broader cryptocurrency market. As such, LINK's surge should be viewed as an early positive sign of returning momentum and risk appetite across the crypto sector.
It signals that, despite Bitcoin's ongoing stagnation below $25k, traders are still willing to bid up tokens with strong fundamentals and technicals. Additional altcoins are likely to follow Chainlink's lead if BTC can find bullish catalysts as well.
Therefore, LINK's big move helps support the case for at least a near-term bottom being put in place for crypto after a bruising H1 2022. Further rallying into year end is likely.
Should You Buy Chainlink After the Recent 11% Surge?
Chainlink's bullish 11% single-day breakout may cause some investors to hesitate, worrying that the move is overdone and ripe for a pullback. However, LINK's technical strength and trading volume point to further upside.
Therefore, any brief period of consolidation or profit taking that pushes the price back towards the breakout point around $7 should be viewed as a strong entry opportunity. Consider dollar-cost averaging over the next few weeks to gain exposure while mitigating timing risks.
But for long-term holders, the recent surge is affirmation of Chainlink's strong technology and real-world value addition. Accumulating LINK even at higher levels will likely generate strong ROI over a multi-year investment timeframe.