As a seasoned crypto investor with a knack for spotting undervalued projects and a penchant for long-term investments, I find myself intrigued by Chainlink (LINK). Despite the bearish market sentiment and the recent price drop, my technical analysis suggests that LINK might be on the verge of a bullish surge.
Despite a widespread pessimistic view towards cryptocurrencies, Chainlink (LINK) has persistently dropped in value relative to the U.S. dollar and Bitcoin (BTC) over the past few months. This mid-tier digital coin, boasting a fully diluted market cap of approximately $10.5 billion and an average daily trading volume of around $266 million, has been stuck in a downward spiral since February.
Due to recent developments, the price of LINK has been testing the bullish trend established last year from a larger horizontal consolidation pattern. From a technical perspective, the price of LINK against the US dollar has been creating a falling wedge formation, which typically precedes a significant bullish surge.
In the next few weeks, it’s possible that the price of LINK might decrease towards the support at around $8.7. This level is also where the 0.786 weekly Fibonacci Retracement lies. However, after this potential dip, there could be a recovery leading back to its record high. Furthermore, the expected interest rate reductions in the U.S. this month might trigger a sell-off, as market participants cash in on the news before the overall optimistic view of the market returns in Q4.
On LINK‘s weekly scale, the Relative Strength Index (RSI) is shaping like a descending triangle pattern, and it has dipped beneath the 50% mark, indicating that the intermediate bearish trend might be dominating.
In other words, if the altcoin’s price remains consistently below the support level ranging from $8 to $9.4, it could potentially drop toward the previous year’s lows around $4.9 within the short term.
Chainlink Network Grows Exponentially
In recent times, as digital assets and Web3 technologies have become more widely accepted, Chainlink has established itself as a significant force. Notably, the Chainlink network offers dependable cryptocurrency oracles to developers working within the Web3 sphere, which are utilized in safeguarding countless smart contracts every day.
As a researcher delving into the world of blockchain technology, I’m excited to share that our team has developed the Cross-chain Interoperability Protocol (CCIP). This innovative solution is designed to facilitate secure and scalable communication between different blockchains. Currently, we’ve successfully integrated our CCIP with leading layer one platforms such as BNB Chain, Ethereum (ETH), Arbitrum (ARB), Polygon (MATIC), and more, paving the way for seamless inter-blockchain interactions.
In a recent advancement within web3 technology, Chainlink network has formed a strategic alliance with Suho.io, a blockchain-focused financial tech company. This collaboration aims at creating and exploring applications for tokenized assets and Central Bank Digital Currencies (CBDCs). Their goal is to facilitate the widespread acceptance of digital assets in emerging markets, particularly Asia, such as South Korea, Japan, and Thailand.
According to Park Ji-soo, CEO of Suho.io, he pointed out that Chainlink has become the go-to solution in the industry for tokenization applications. This partnership, he believes, will foster a lot of collaboration between Suho.io and Chainlink in the Asian market. The aim is to cater to the requirements of financial institutions and establish essential solutions for the digital asset sector.
Since its beginning, the Chainlink network has facilitated more than $15 trillion in total transaction worth, all while maintaining a flawless security record. This unblemished track record has earned it the trust of numerous institutional investors, among them many prominent U.S. financial institutions.
Read More
Sorry. No data so far.
2024-09-02 14:48