Chainlink’s daily chart analysis review is bearish.
LINK’s dependence on Bitcoin could result in further losses, should the market fail to recover.
Could 2.0 protocol save the situation?
Yerevan (CoinChapter.com) – Chainlink’s native token LINK fell victim to the new bearish wave across the crypto market. As Bitcoin lost 4.24 percent in the past 24 hours, LINK declined by 11 percent and traded at $17 in Tuesday’s London session.
Chainlink daily chart
LINK dropped below the significant support margin of $19.7, which managed to keep it afloat after the May 19 decline.
The token unsuccessfully retested the said line and has now reached its lowest value since mid-January 2021. Its next crucial support lies at the $16 price margin.
Technical analysis conducted by AMBCrypto cited Bollinger bands indicator for the LINK price review. The indicator is used to adjust to volatility swings in the underlying price. The analysis stated that the bands converged slightly in the past sessions, and the basis was in the resistance position moving above the candlesticks.
According to the Squeeze Momentum Indicator, LINK has been under great bearish pressure, shifting the coin to active squeeze status.
The Chainlink token depends on the fluctuations on the Bitcoin charts, which was proven on multiple occasions.
When BTC registered a 21 percent decline February 21-28, LINK followed suit with a 28 percent drop during the same period. A similar positive correlation occurred April 16-25. The alpha crypto lost 22.5 percent, while LINK complied, declining by 27 percent. From May 9 through May 19, Bitcoin lost 37 percent of its value, while Chainlink declined by 50 percent.
If the past is any indication, should BTC fail to recover from the crash and continue the descent, LINK might follow suit and eye further losses. However, Chainlink also has fundamental developments to lean on.
Chainlink 2.0 is a new protocol introduced by the company back on April 15. The whitepaper contains various improvements for smart contract developers and applications. It states: “Decentralized Oracle Networks will create a decentralized meta-layer that enhances smart contracts with highly scalable, confidential, and secure forms of off-chain computation, in addition to the external data feeds that Chainlink powers today.”
The paper defines a new way for building hybrid smart contracts. Decentralized Oracle Networks offers all of the capabilities that blockchains cannot. It will give the users the best of two worlds, serving as an off-chain computation layer tied to the blockchains for security, and operating with the scalability of off-chain systems simultaneously.
Chainlink 2.0 could act as a crutch for LINK during the recent avalanche. However, time will show if the protocol will be enough to keep the token afloat.
Chainlink suffered considerable losses in confluence with Bitcoin and the rest of the market. Its token LINK traded at $17.0 in the European session Tuesday. The daily chart showed a correlation between LINK and BTC, hinting at more losses should the Bitcoin decline continue. Chainlink also has blockchain developments in action, which could remedy the bearish situation.
Lilit is a Yerevan-based Markets writer, skilled in 3 languages, and interested in writing about the tech world, trading, art, and science. She also has a background in psychology and marketing, which helps deliver the right message to the target audience.
UNUS SED LEO, a cryptocurrency that describes itself as "the utility token at the heart of the iFinex ecosystem,"...
Our Partners
We use cookies on our website to give you the most relevant experience by remembering your preferences and repeat visits. By clicking “Accept”, you consent to the use of ALL the cookies.
This website uses cookies to improve your experience while you navigate through the website. Out of these, the cookies that are categorized as necessary are stored on your browser as they are essential for the working of basic functionalities of the website. We also use third-party cookies that help us analyze and understand how you use this website. These cookies will be stored in your browser only with your consent. You also have the option to opt-out of these cookies. But opting out of some of these cookies may affect your browsing experience.
Necessary cookies are absolutely essential for the website to function properly. These cookies ensure basic functionalities and security features of the website, anonymously.
Cookie
Duration
Description
cookielawinfo-checbox-analytics
11 months
This cookie is set by GDPR Cookie Consent plugin. The cookie is used to store the user consent for the cookies in the category "Analytics".
cookielawinfo-checbox-functional
11 months
The cookie is set by GDPR cookie consent to record the user consent for the cookies in the category "Functional".
cookielawinfo-checbox-others
11 months
This cookie is set by GDPR Cookie Consent plugin. The cookie is used to store the user consent for the cookies in the category "Other.
cookielawinfo-checkbox-necessary
11 months
This cookie is set by GDPR Cookie Consent plugin. The cookies is used to store the user consent for the cookies in the category "Necessary".
cookielawinfo-checkbox-performance
11 months
This cookie is set by GDPR Cookie Consent plugin. The cookie is used to store the user consent for the cookies in the category "Performance".
viewed_cookie_policy
11 months
The cookie is set by the GDPR Cookie Consent plugin and is used to store whether or not user has consented to the use of cookies. It does not store any personal data.
Functional cookies help to perform certain functionalities like sharing the content of the website on social media platforms, collect feedbacks, and other third-party features.
Performance cookies are used to understand and analyze the key performance indexes of the website which helps in delivering a better user experience for the visitors.
Analytical cookies are used to understand how visitors interact with the website. These cookies help provide information on metrics the number of visitors, bounce rate, traffic source, etc.
Advertisement cookies are used to provide visitors with relevant ads and marketing campaigns. These cookies track visitors across websites and collect information to provide customized ads.