Chainlink Price Analysis: LINK Breaks Below The 200-day SMA

Daily Chainlink LINK Price Forecast

Last Updated August 23rd 2021
2 Min Read
  • The Chainlink price momentum is shuffling between bullish and bearish.
  • The parabolic SAR from positive to negative.

The Chainlink price had two straight bearish days as it dropped from $28.75 to $27.80 and flipped the 200-day SMA from support to resistance. As things stand, the buyers and sellers are canceling each other out. Looking at the MACD, we can see that market momentum is oscillating between red and green.

Chainlink Price Previously Found Support At 20-day SMA

The Chainlink price rose from $25.30 to $28.75 on August 19 and August 20 after finding support at the 20-day SMA. Prior to that, between August 16 and August 18, LINK met continuous resistance at the 200-day SMA and dropped to $25.30.

Image: LINK/USD daily

LINK/USD daily chart 082321

As per IntoTheBlock’s IOMAP, the Chainlink price has the nearest resistance at the 200-day SMA ($28). Previously, at this level, 15,000 addresses had purchased almost 11 million LINK tokens at this line.

Image: IntoTheBlock

LINK/USD volume chart 082321

FRAX Stablecoin Integrates Chainlink Price Feeds

Frax, a new fractional-algorithm stablecoin protocol, has recently upgraded its entire oracle mechanism to Chainlink Price Feeds. Users can get even greater security and reliability by integrating Chainlink’s leading decentralized oracle network. 

The integration includes the use of Chainlink Price Feeds for both FXS/USD and FRAX/USD. Chainlink was chosen as the go-to-oracle solution as its infrastructure is time-tested in production and certified to secure billions of dollars in value for leading DeFi protocols. Also, it is easy to expand the protocol to other blockchains in the future since Chainlink Price Feeds runs natively across several blockchains. 

Frax is a community-governed project that focuses on being a fully autonomous stablecoin that requires no active management from users or developers. It pioneered the fractional-algorithmic stablecoin protocol with some of its supply backed by collateral and parts of the supply algorithm. Its collateral requirements change algorithmically depending on its market price. 

Before Chainlink, FRAX managed its peg using Uniswap’s TWAP price feeds. But TWAP price feeds had insufficient market coverage and are a lagging market indicator, which might lead to inaccurate and/or stale prices. As FRAX scaled to secure more value for users, it needed to upgrade the security and reliability of its price feed oracles.

Chainlink Price Feeds was the go-to option since it provides the most expansive market coverage in the whole blockchain industry. It also holds a historical track record of price updates even during the worst network conditions. 

Sam Kazemian, Founder of Frax stated, “As FRAX begins to scale in TVL and tap into a wider user base across multiple blockchains, it’s critical to upgrade our oracle mechanism to Chainlink as a means of achieving stronger data quality assurances that further help maintains the peg.”

“Chainlink Price Feeds provide FRAX with robust market coverage along with the multi-chain infrastructure needed to rapidly expand and bring FRAX to more users around the world,” added CTO Travis Moore.

Chainlink Price Is Expected To Reach These Levels

The Chainlink price must reconquer resistance at the 200-day SMA ($28) to continue the upward trend. 

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