Chainlink Price Analysis: LINK Bounced Up From Critical Level To Trend Above $30

Last Updated July 23rd 2021
2 Min Read
  • Chainlink price faces a lack of strong resistance up front.
    • The MACD shows increasing bullish market momentum.

    The Chainlink price bounced up from $25 to $32.40 between March 25 to April 2. During this upward climb, the 20-day and 50-day SMAs were reversed from resistance to support. Since then, it faced a correction to $29.25 – found support at the 50-day SMA – and then jumped back to $31.40 over the next two days. 

     

    Bulls Took Control Of Chainlink Price After Bouncing Up From 50-day SMA

    As you can see, making the 50-day SMA a support line has been absolutely crucial for Chainlink price. The MACD shows increasing bullish momentum, so a further rise in price is expected. The RSI is nowhere close to the overbought zone, which gives LINK further growth potential.

    Image: LINK/USD daily

    On the upside, the Chainlink price shows a lack of strong resistance levels. The only barrier of note is at $34, wherein 6,000 addresses had purchased over 785,000 LINK tokens. LINK should be able to take over this barrier and reach $40.

    Image: IntoTheBlock

    Unit Protocol Switches to Chainlink

    Unit protocol has recently decided to remove Keep3r oracle as the primary oracle. Unit received their price data from Keep3r. The company tweeted:

    Since Keep3r stopped updating the price feed regularly and is not functional at the level possible to use it as an oracle solution for Unit protocol, we decided to cut it entirely from the system.

    The team also announced that it is working on an oracle upgrade. Hence, the USDP borrowing limits will be provisionally set to 0 for all collaterals except for ETH as it takes its feed from Chainlink. The upgrade needs a few days for completion.

    During this time, users can close their CDP and repay the debt if they choose to. However, this is not a necessary step as the funds are safe. Unit protocol will switch their oracles to Chainlink and add new collaterals from the Chainlink price feed. The team stated:

    The upgrade will allow Unit protocol to be more robust and help to grow faster. Own oracle solution will allow adding more collaterals in the future without significant protocol expenses to quote it. 

    Blockchain oracles are third-party services that provide smart contracts with external data. Blockchain and smart contracts cannot access data outside the network and oracles serve as a bridge to meet this gap. The data transmitted could entail the temperature measured by a sensor, information about prices, or a successful payment confirmation.

     

    Chainlink Price Is Expected To Reach These Levels

    Chainlink price will likely rise to the $34 resistance, break above it and reach $40.

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