Chainlink Price Analysis: LINK Has Flipped The $49.50 Line From Support To Resistance

Daily Chainlink LINK Price Forecast

Last Updated July 23rd 2021
3 Min Read
  • Chainlink price is falling towards $46 support barrier.
  • The Bollinger Band has started expanding to show increasing price volatility.
  • The Chainlink price bounced up from the 50-day SMA on April 25 and reached $52.20 on May 9. During this upward surge, LINK gained 67% in overall valuation and flipped the 20-day SMA from resistance to support. Let’s take a closer look with technical analysis. 

    Chainlink Price Charts Bearish Engulfing Pattern

    On May 10, the Chainlink price crashed to $48, as the bears took full control of the market. The two latest candlesticks have formed the bearish engulfing pattern. In fact, LINK reached an intraday low of $41, before it found some much needed support at the 20-day SMA. Due to this latest price drop, the relative strength index (RSI) has dipped back into the neutral zone.

    Image: LINK/USD daily

    LINK/USD daily chart 051121

    Chainlink price has a solid support level at $46, wherein 394 addresses had purchased almost 6.5 million LINK tokens. This barrier should be sturdy enough to prevent a catastrophic drop.

    Image: IntoTheBlock

    LINK/USD volume chart 051121

    Lady Luck Winners Will Now Use Chainlink VRF

    Lady Luck, a blockchain-based lottery platform, recently announced that it is integrating Chainlink Verifiable Random Function (VRF) to access secure and verifiable random numbers used to select winners for Lady Luck Lottery draws. By leveraging Chainlink VRF, Lady Luck can host fully decentralized, automated, and provably fair lotteries. 

    In a blog post, Lady Luck noted that its developers, oracles, or the public cannot tamper with the winner selection process. Additionally, the seed used to generate the VRF result is made completely public after each VRF call, providing transparent verification of the RNG’s integrity, the firm noted. 

    Lady Luck is one of the first "fully decentralized, automated, and fair lotteries hosted entirely on the Ethereum blockchain." Holders have the chance to win a Mega lottery and Super lottery, creating two winners every week.

    A 3% transaction fee is taken from each ticket holder, with 2% going towards the “Mega Jackpot” and 1% towards marketing and gas fees to allow the network to operate efficiently and independently. The second lottery is also compiled weekly, with 1% of holders’ wallets being taken every Friday and placed in a “Super Jackpot”. 

    Chainlink VRF combines block data that is still unknown when the request is made with the oracle node’s pre-committed private key to generate both a random number and a cryptographic proof. The Lady Luck smart contract will only accept the random number input if it has valid cryptographic proof. This provides users with automated and verifiable assurances directly on-chain that each Lady Luck Lottery drawing is provably fair and cannot be tampered with by the oracle, outside entities, or the Lady Luck team.

    Lady Luck Lead Lando said:

    Integrating secure random number generation is a core part of the Lady Luck project. By using Chainlink VRF, we are ensuring that our users have the most secure and transparent on-chain randomness available. As a result, we’re able to build new decentralized products for the gaming industry that leverage provably fair and unbiased randomness from the onset. 

    Chainlink Price Is Expected To Reach These Levels

    The Chainlink price is currently falling towards the $46 support barrier. This barrier is strong enough to absorb a lot of selling pressure. The buyers could bounce up from this line and hit the $49,50 resistance line again.