Chainlink was launched recently in the year 2017 to bring smart contracts to a globally approachable platform. The central aspect that differentiates it from other cryptocurrencies is the use of an Oracle, which is a bridge between the existing cryptic platforms and the outside world for incorporating real-world data through the blockchain. Its intention and application in real life add some amount of credential to this cryptocurrency. Currently, smart contracts are decentralized, and the data needed to execute the smart contracts are centralized, which creates a contradiction.
The use case of Chainlink is meant to solve this issue of dependability on centralized data. Chainlink would be looking to create a decentralized oracle network that could feed in real-world data without any centralization authority or figure adding to the entire concept of decentralization and additional security to smart contracts. Since smart contracts execute automatically when the conditions are met, centralized information can be modified to rig the entire result of a smart contract.
Chainlink currently holds a decent position amongst the best cryptocurrencies despite its consolidation over the last four months. Still to this date, Chainlink trades at a 51% discount to its May 2021 high of $53.41. Today, Chainlink is worth roughly $11.85 billion, with nearly 46% of the circulating currency. LINK even faces an immediate threat to its 17th position from Bitcoin Cash and Shiba Inu.
Chainlink Price Analysis
Chainlink has delivered a gain of close to 90% from July 2021, but it’s still far from its all-time high levels. Those who see potential in this cryptocurrency application are the only ones taking advantage of current consolidated prices. Crossing its immediate critical level of 200 DMA could add some buying sentiment, but it would be too early to say so without referring to other technical data.
Chainlink has strong support at $21 and faces a strong resistance close to the 200 DMA curve, which is active at $28 levels. Another resistance for Chainlink is active at the $32 level. Sudden profit booking in September completely destroyed the previous positive sentiment on this cryptocurrency. In the last month, there has rarely been any positive attempt at reaching a higher value than the movements in April and May of 2021.
RSI of Chainlink is above a neutral stance, while the volumes have mostly remained the same since mid-July of 2021. Frequent attempts at crossing the 200 DMA could become a positive aspect bringing buyer attention to this digital asset. LINK can only be considered a strongly favorable cryptocurrency only after it breaches the $32 level. But the pin bar candles forming close to 200 DMA are telling a different story.
Based on our LINK price prediction, one should ideally wait for the 200 DMA to be breached and held for a few days before making any attempt to add this digital asset to your portfolio.