Chainlink Price Analysis: LINK Buyers Attempts To Offset Sunday’s Losses

Daily Chainlink LINK Price Forecast

Last Updated August 10th 2021
2 Min Read
  • The Chainlink price faces immediate resistance at $25.
  • RSI is hovering at the edge of the overpriced zone.

On July 21, the Chainlink price jumped from $13.65 to $24.65 till August 7 – gaining $11 in its valuation. During this jump, LINK managed to:

  • Flip the 20-day and 50-day SMAs from resistance to support.
  • Reverse the MACD from red to green.

During this jump, LINK managed to push the relative strength index (RSI) into the overbought zone and incite an immediate bearish correction. Due to this correction, LINK dropped to the $23 support line this Sunday.

Chainlink Price Jump Up To Make Up For Losses

Following the aforementioned drop in Chainlink price on August 9th, LINK recovered to $24.45 after bouncing up from the $23 support wall. The relative strength index (RSI) tells us that a further rise will make LINK overpriced and trigger another bearish correction.

Image: LINK/USD daily

LINK/USD daily chart 081021

As per IntoTheBlock’s IOMAP, the Chainlink price faces strong resistance at $25. Previously, at this level, 5,000 addresses had purchased almost 30.5 million LINK tokens at this line.

Image: IntoTheBlock

LINK/USD volume chart 081021

Chainlink Incorporates Decentralized Off-Chain Computation

Chainlink has recently introduced a service known as decentralized off-chain computation to monitor and automate triggers to blockchain smart contracts. The Chainlink Keeper Network service will also facilitate anti-fraud and anti-risk methods on blockchains when exchanging data with other blockchains. 

Additionally, users can now specify a time at which they want their smart contract to execute. The Anti-Fraud Network is a network of nodes, and it runs parallel and independent to the Chainlink cross-chain bridge – a bridge that allows one blockchain to interchange and share data, tokens, and value with other blockchains. 

The anti-fraud monitors the cross-chain protocol, and its nodes monitor malicious and fraudulent activities with the potential to cause financial loss. DApps can join the network to guarantee their users they are watching their services for any fraudulent activity.

It can lock the bridge in case risks, and fraud events are identified on any connected node. It could allow an additional layer of trust to help blockchains exchange billions of dollars worth of value without fear of loss or fraud as a result of node and data errors. Aave Co-founder Stani Kulechov recently said:

“Chainlink Keepers is critical for securing user funds and maximizing the decentralization of the Aave protocol. The security provided by the Chainlink Network’s oracle infrastructure has served the Aave protocol well, and now users of the Aave protocol can leverage Chainlink’s off-chain service to participate in the Aave ecosystem as liquidators to secure the Aave protocol and its liquidity pools."

The Chainlink Keepers went live on Ethereum mainnet recently as the network upgraded although it is in the beta testing stages. This means smart contract developers can now build smart contracts that allow Keeper nodes to inject inputs computed off-chain to trigger on-chain functions. 

Chainlink Price Is Expected To Reach These Levels

As things stand, the Chainlink price still faces two strong resistance barriers at $25 and $26. Taking them down will take LINK to the $30 line.

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