- LINA crypto price has soared by more than 420% from the year-to-date low
- It rose as its user sentiment surged and after Huobi listed its perpetual token.
- Linear Finance’s token has more upside but a pullback is likely.
LINA price has gone parabolic, making it one of the best-performing cryptocurrencies in the past few days. The token soared to a high of $0.026, the highest point since April 2022. In all, it has soared by more than 420% above the lowest level this year. In contrast, Bitcoin has jumped by less than 50% year-to-date.
Why is Linear Finance token soaring?
For starters, Linear Finance is a blockchain project in the decentralized finance (DeFi) industry. The developers have build a platform that provides numerous services to people interested in DeFi. For example, it has Linear Swap, a platform similar to other popular swap projects like Uniswap and PancakeSwap.
It also has Linear Exchange, a platform where users can trade liquid asets like cryptocurrencies, commodities, and thematic indices at low costs and slippage. Other products in the ecosytstem are Linear Buildr, and Linear Vault among others.
There are three main reasons why LINA price jumped this week. First, it gained popularity among many crypto traders as it trended in most social media platforms like Twitter and StockTwits. In most periods, cryptocurrency prices tend to do well when they are trending.
Second, LINA price soared after its perpetual futures token was listed in Huobi, one of the biggest cryptocurrencies in the world. This means that traders can now trade LINA/USDT pair. In most cases, cryptocurrencies tend to rally after a major exchange listing. Finally, Linear Finance distributed staking rewards for LUNA and LINA.
LINA price prediction
The daily chart shows that the LINA token price has been in a strong bullish trend for months. This week, the token managed to move above the important resistance point at $0.0195, the highest point on April 5 and the previous year-to-date high.
LINA also jumped above the 61.8% Fibonacci Retracement level and the 50-day and 100-day exponential moving averages. The daily trading volume is still rising while the Relative Strength Index (RSI) has jumped above the overbought level.
Therefore, while the overall outlook is bullish, there is a likelihood that it will drop and retest the key support level at $0.195. This process is known as break and retest pattern and is usually a positive sign since it signals a bullish continuation. Therefore, I suspect that the token will jump to the resistance point at $0.035 in June.
