Popular blockchain oracle, Chainlink and its native token, LINK have been doing significantly well following the most recent market surge. LINK which saw lows in the region of $14 during the slump in the market has since seen a marked improvement. The token rallied to over double its lowest price to reach an all-time high slightly above $30. Although it has since seen a slight pullback and currently sits below $26, professional traders still believe that a 40$ price point is imminent.
Chainlink is a decentralised blockchain oracle built on the Ethereum network. It works as an intermediary between smart contracts built on the blockchain and the outside world. According to its developers, the oracle can be used to verify whether the parameters of the contract are met and supply this information to the blockchain while remaining independent of anyone with a stake in the contract’s outcome. Its unique use case has been very well received with the token currently occupying the 13th position on CoinMarketCap.
More Upwards Movement For Link?
After hitting its most recent peak above $30, LINK retraced to a low of $24.30 before attempting to continue its bullish run. In the short term, the coin faces a resistance at $26.50 which bulls will need to break through to continue upwards moves. Breaking through this resistance will see the momentum continue until it attains $30 where it faces its next resistance. On the other hand, a failure to break through the nearest high, the price will fall to $24.30
Indicators on the LINK chart remain largely positive with the relative strength index showing a good equilibrium between buyers and sellers. Hence the coin is neither underbought nor oversold. The Stochastic Indicator on the daily chart also shows positive connotations for future price movements. The indicator shows that the coin is above 75% indicating bullish sentiment. Although the candles have bounced off support nicely, they still sit below the 21-day Simple Moving Average(SMA). A further fall below the 50-day SMA would be negative indicating the beginning of a possible downtrend.
LINK/USD. Source- Tradingview
LINK’s Fundamentals Remain Strong
With smart contracts becoming increasingly popular as cryptocurrency use surges, LINK stands poised for a nice continuation in its most recent rally. LINK’s ability to provide a bridge between smart contracts and the physical world will continue to be needed. One point that stands to its advantage is its revolutionary Verifiable Randomness Function(VRF). LINK’s VRF serves to preserve transparency and fairness in its efforts to verify off-chain information. VRF introduces randomness to on-chain distribution removing the possibility of human favouritism.
Over 250 projects have adopted LINK for the services it provides and strong fundamentals backed by a dedicated team means that number will likely continue to grow.
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