Decentralized networks and computing have taken Chainlink to new heights of technical development. Furthermore, onboarding highly experienced technical advisors such as former LinkedIn CEO Jeff Weiner and ex-Google chairman Eric Schmidt has sparked huge joy for developers and LINK enthusiasts.
Multiple mainstream multinational corporations, such as Accuweather and FedEx, have partnered with Chainlink for data verification. Growing from a cryptocurrency price action-sharing platform to a platform allowing the development of DeFi protocols, the growth of this network has been tremendous.
Because of its architecture, Chainlink is referred to as a network and not a blockchain, which shouldn’t confuse holders of this token. It was developed as an abstraction layer for universally connected smart contracts.
It relies on a decentralized oracle network to securely interact with external data feeds and several off-chain data to establish itself as a dominant smart contract. The market capitalization for Chainlink remains above $3.5 billion, with a mere 49% of its token in active circulation.
Chainlink is gradually moving upwards with more support from lower levels, but the price action is yet to retrace back to $9.5 levels. The technical indications are not quite strong, but they move ahead without any sign of weakness, creating the ambient scenario for buying. However, before making any final decision, do read our LINK price prediction.
Chainlink price action showcases an emerging resistance level at $8.12 that has pushed back the last three breakout attempts. This time, the price movement doesn’t seem to be any different; hence, there could be another pushback for Chainlink. Although based on the recent movements, a new support level has emerged at $6.9, which has helped the LINK token gain a subsequent price hike.
On top of these movements, the 50 and 100 EMA curves have little consequence since the price action can breach them without facing any profit booking or resistive stance from sellers. For the short term, based on the resistance developed at $8.12, buyers would be better placed to enter after a breakout or buy near $7 for minor profits.
RSI in this time frame has reached a peak of 52, while MACD fails to indicate a clear trending outlook. Transaction volumes for LINK have also dropped to fresh lows indicating a possible turnaround from these levels.
On weekly charts, the Chainlink price action seems a little clear, the resistance seems to have spiked to $8.835, while support is available at $6.06. The resistance visible on daily charts is a sort of consolidation of weekly duration. The tough momentum for LINK holders can be fruitful if this positive trend line indicated by the purple line is respected and turns into a buying zone for longer.
RSI, for the weekly duration, operates on stronger levels than in June and July but has remained at similar levels for the last two months. MACD, on the other hand, is yet to deliver a unique outcome since July 2022, as its bullish crossover pattern continues to move without any sign of weakness.
Visible transaction volumes have surely dipped, which could be an indication of higher buying or lesser selling in hopes of a breakout. Thus based on technical indicators, current price levels could be suitable for a long-term breakout and trending price action.
