Chainlink ducks crypto market downtrend as LINK rises 36% in 2022—but is this rally sustainable?

Chainlink ducks crypto market downtrend as LINK rises 36% in 2022
image from Chain.link/ecosystem

Key Takeaways:

  • Blockchain oracle network Chainlink’s in-house token LINK could decline to month low following a short-term uptrend.
  • The network integration grew with several new deals.

YEREVAN (CoinChapter.com) – Chainlink (LINK) gained 36% year-to-date and was changing hands at $26.69 in the European session on Jan 10. However, the overall drop from its all-time high of $53.0 in May 2021 stood 50%.

LINK USDT Daily Price Chart

LINK retested one significant descending trendline support twice in mid-December, enabling its bounce towards a falling trendline resistance, which has been capping the token’s upside attempts since its all-time high around $54 in May 2021.

Should LINK retest the said resistance again, it would mean a 20% uptrend towards $30.0 by the end of the month.

LINK USDT Daily Price Chart
Chainlink (LINK) daily chart. Source: LINKUSD on TradingView.com

LINK’s daily relative strength index (RSI; the purple graph on the chart above) approached 70 on the daily chart, which shows traders’ high confidence in the digital asset and bigger reward expectation. Nonetheless, bouncing over 70 — an overbought zone — also risked bringing selloff pressure to the market.

However, zooming out to the weekly chart paints an indecisive picture for LINK. The token formed a broken Symmetrical Triangle, which features two converging trendlines with a similar slope. The formation gradually lowers the price swing and expects the asset to break significantly after the Triangle is exhausted.

LINK USDT weekly price chart.
Chainlink (LINK) weekly chart. Source: LINKUSD on TradingView.com

The Triangle does not define the vector of the mentioned break. Thus, whether LINK will establish new highs in Q1-Q2 or fall back to year lows is unclear. However, as long as the token charts within the pattern, Chainlink bears can expect a 35% decline and a subsequent support retest at $19.5, after LINK retests the resistance at $30.0.

Bullish Chainlink Catalyst All The Way

Chainlink announced a series of integrations in 2022. For example, the complete aggregation tool OpenOcean will enable Limit Order Functionality through Chainlink integration.

The magic behind the OpenOcean limit order functionality is Chainlink Keepers — a decentralized network of professional DevOps incentivized to automate the calling of smart contract functions when predefined conditions occur.

read the announcement.

Chainlink Keepers will use decentralized off-chain computation to monitor asset prices. The users will set a predefined threshold for the asset prices through limit orders. Once the prices cross the threshold, Chainlink Keepers will “call the OpenOcean smart contract responsible” for limit orders.

OpenOcean will verify the threshold crossing with live data from Chainlink Price Feeds when that happens. If the latter verifies the price change, OpenOcean will execute the limit order trade on the users’ behalf.

How useful was this post?

Click on a star to rate it!

close
Chainlink, Chainlink ducks crypto market downtrend as LINK rises 36% in 2022—but is this rally sustainable?

Subscribe Today
for our Weekly Newsletter

Free Weekly Crypto News without the spam.

Related Articles

Our Partners

SwapCoin.com RapidCoin.com ChangeNOW.com Paybis.com