Chainlink Price Analysis: LINK Looks To Touch The 20-day SMA And Flip Crucial Level

Daily Chainlink LINK Price Forecast

Last Updated July 23rd 2021
2 Min Read
  • Chainlink price has two straight bullish sessions.
  • The MACD has reversed from bearish to bullish.
  • Between July 7 and July 20, the Chainlink price crashed from $20 to $13.70. During this drop, LINK flashed the following three sell signals:

    • Flipped the 20-day SMA from resistance to support.
    • Reversed the parabolic SAR from positive to negative.
    • Flipped the MACD from green to red.

    Chainlink Price Hovers Around $16

    Over the last two days, the Chainlink price has jumped from $13.70 to $16. Due to this growth, the MACD has reversed from red to green. On the upside, immediate resistance lies at the 20-day SMA ($17).

    Image: LINK/USD daily

    LINK/USD daily chart 072321

    As per IntoTheBlock’s IOMAP, 8,200 addresses had purchased almost 10 million LINK tokens at the 20-day SMA. If the Chainlink price manages to cross this level, it should flip the parabolic SAR from negative to positive.

    Image: IntoTheBlock

    LINK/USD volume chart 072321

    Avalanche To Include Data From Chainlink

    Avalanche, a blockchain-based platform used to launch apps, has incorporated data feeds from Chainlink, an “oracle” network, which is a service that brings data from outside sources into a blockchain.

    Smart contracts with external data, such as prices, piped in are powering a growing decentralized finance (DeFi) economy of lending apps, decentralized exchanges, and price-sensitive derivatives markets. DeFi refers to apps that allow people to conduct financial transactions without a traditional intermediary such as a bank.

    Adding Chainlink data feeds to the mix will kickstart a DeFi ecosystem on Avalanche, said John Wu, president of Ava Labs, the company that runs Avalanche.

    "There are over 225 projects building on the Avalanche ecosystem, many of them in integration mode, waiting for some functionality such as oracles from Chainlink. Some large stablecoins are also shortly down the pike. So this is why we’re so excited."

    Historically, DeFi and blockchain oracles emerged at about the same time, said Chainlink co-founder Sergey Nazarov. Nazarov said:

    "That’s not a coincidence. The dynamic around DeFi is that you really can’t build it without external data. DeFi is what we call a hybrid smart contract in the sense that it combines on-chain code and off-chain systems."

    The Chainlink network is a collection of many services that provide data on a wide range of areas from prices to weather to gaming, Nazarov said.

    Chainlink Price Is Expected To Reach These Levels

    If the Chainlink price does reverse the parabolic SAR, it should gain the momentum required to touch the 50-day SMA and cross the $20 psychological level.