While Ethereum, Solana and other networks are experiencing problems with market performance, Chainlink has become the most profitable asset in the last 24 hours
One of the biggest surprises for the cryptocurrency market was Chainlink’s return to the profitability leaderboard as the coin gained over 12% of its value over the past 24 hours.
According to Perpetual Futures Contracts on Binance, LINK has gained over 35% in value over the past eight days of trading, making it one of the strongest positions in the cryptocurrency market.
Such a strong growth could be linked to the introduction of a staking mechanism of LINK and the updated roadmap. On-chain data suggests that whales are the main buyers of the token. Following the release of the staking mechanism, Chainlink developers hope to reward their users, increase community participation in the development of the network, and empower node operations.
But apart from the fundamental development of the network, there are a number of market-related factors that may have helped LINK gain a foothold above $8.
Indicators reversed before update
Despite the big release and upcoming announcements, indicators like the Relative Strength Index changed direction at least a week before news of the upcoming feature. Unfortunately, the price did not immediately follow the indicator, which created a gap between the two metrics.
Whenever an RSI divergence appears on a downtrending chart, investors expect a reversal in the coming days or weeks, which we are seeing on LINK right now.
LINK reached the first resistance level reflected in the 50-day exponential moving average for the upcoming market action. This is the first test of the moving average since the April selloff that sent LINK directly to the $5 price range.