- Chainlink (LINK) seemed poised for a strong uptrend
- A lack of trading volume prevented this trend from happening
- Chainlink’s competitor Band Protocol unveils the next itereation of its blockchain
BELGIUM (CoinChapter.com) — The vast majority of top 100 cryptocurrencies by market cap are of great interest to speculators and traders globally. Chainlink, or LINK, was seemingly poised to pop off, yet the momentum did not materialize. As more competitors emerge and stake their claims, the coming weeks and months may prove crucial.
Also read: Chainlink churns 40% gains in two weeks; analyst sees a LINK boom ahead.
Chainlink Uptrend Hits A Snag
It is not entirely uncommon to see prominent technical indicators depict a potential market trend without it materializing.
Technical analysis is used to help determine market sentiment, yet it is not a foolproof or 100% accurate method. Markets are volatile – primarily cryptocurrencies – and can ignore the “sensible” trend at any moment. For example, Chainlink’s LINK was seemingly poised to go up by as much as 100%. Unfortunately for the hopeful community, none of that materialized in the end.
As the chart above depicts, the falling wedge breakout confirmation was a very likely scenario. However, it would require a rise above the upper trendline and a spike in volume. That is where the market fell short, yet no one can pinpoint exactly why that is the case. Financial markets will not always make sense, unfortunately, and this appears as one such instance.
Current behind-the-scenes developments show there may be some future LINK price potential, though. For example, KSM Starter, a launchpad on the Kusama ecosystem, will use Chainlink’s VRF to provide provably fair token allocation.
A significant step forward for this technology. Chainlink’s ecosystem offers many different tools other developers can tap into.
Competition Is Heating Up
While the current LINK price trend may not be what the analysts had expected or hoped for, things are always subject to change.
However, the competitors to Chainlink are not sitting still either. Competition keeps ramping up in the blockchain space as new tools, products, and services are created around the clock. That is beneficial to the broader ecosystem, as it confirms the potential of blockchain technology and how developers can use it in different settings.
One of the competitors to Chainlink is Band Protocol. The team has unveiled the next stage of its network, known as BandChain 2. One of the selling points is being cross-chain compatible, a concept that is becoming a lot more outspoken as of late. In addition, data providers can now run Band Protocol nodes themselves, introducing more transparency and decentralization.
The network upgrade of Band Protocol puts a bit of pressure on Chainlink. Although both projects thrive in their own ways, this news can bring more price pressure to LINK. When a competitor achieves another milestone, traders’ attention will often shift to what has more price potential.
However, the failed breakout for LINK can equally incentivize traders to make it happen by other means. There are no dull days where cryptocurrency markets are concerned, which is part of their appeal.
JP Buntinx has been writing about cryptocurrency since 2012. His interest in crypto, blockchain, fintech, and finance allows him to cover a broad range of different topics.
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