Chainlink Technical Analysis: LINK hits new all-time high on breaking $20

• Chainlink rally stalls at a new yearly high but buyer interest remains high.
• LINK’s network growth spikes, suggesting that the rally could hit higher highs.

Chainlink’s rally has been unstoppable over the last week. The journey to a new all-time high has been enriching since the year started—moreover, the break at $20,000 allowed buyers to aim for a new high, hitting $22.8.

Chainlink on the verge of a correction

The live feed oracle token is exchanging hands at $22 following a minor rejection from the new highs. As highlighted by the Relative Strength Index, overbought conditions suggest that LINK may continue to retreat toward $20. If this support fails, the 50 Simple Moving Average, slightly above $18, will come in handy.

LINK/USD 4-hour chart

Santiment’s “Daily Active Addresses” model shows that the number of new addresses created on the Chainlink network topped-out on January 15 at 8,203 addresses per day, calculated on a 30-day trailing average. If the newly created addresses continue to rise, it will be a bullish signal for Chainlink. Moreover, the project as a whole is likely to receive more attention, increasing industry adoption.

Chainlink network growth

A new all-time high is in the cards if Chainlink holds above $22. Moreover, a period of consolidation may come into the picture based on the Relative Strength Index leveling motion.