Chainlink Price Analysis: The $16.50 Support Wall Stays Strong. But For How Long?

Daily Chainlink LINK Price Forecast

Last Updated July 23rd 2021
3 Min Read
  • Chainlink price could drop for four more sessions, as per the TD sequential detector.
  • A break below the $16.50 wall will take LINK to $14.50 support.
  • The Chainlink price has once again retested the $16.50 support wall and the bears have once again failed to break below this line. Previously, on July 7, LIK dropped from 20 to $17.20 and flipped the 20-day SMA from support to resistance.

    Chainlink Price Can Potentially Drop Some More

    When we look at the Chainlink price daily chart, it looks like LINK could drop for 4 more sessions as per the TD sequential detector before it flashes the red-nine candlestick. The MACD indicates that the market momentum is on the verge of reversing from green to red.

    Image: LINK/USD daily

    LINK/USD daily chart 071521

    As we have seen already, the $16.50 support wall has prevented the Chainlink price from going any further down. As per IntoTheBlock’s IOMAP, 7,500 addresses had purchased almost 3.65 million LINK tokens at this level. 

    Image: IntoTheBlock

    LINK/USD volume chart 071521

    BTC and ETH Options Now Available Through the dxFeed Chainlink Node

    dxFeed recently announced that it expanded the on-chain datasets available to smart contracts through the official Chainlink node. Developers can now call the dxFeed Chainlink node to access premium options analytics data, including implied volatilities (IV) for options markets, along with real-time pricing data for a wide range of equities and cryptocurrencies. 

    In a blog post, dxFeed noted that it worked extensively with the Chainlink team to refine the calculation methodology of its IV data.

    "Our advanced analytics data service gives DeFi developers access to at-the-money and VIX-esque implied volatilities for BTC and ETH. It also applies a model-free algorithm that works well on both low and high liquidity markets as well as in cases of high volatility. This algorithm generates prices that fit the market, arbitrage-free prices across an option class, and smooth price and volatility curves."

    Since implied volatility data has traditionally been absent from blockchain-based markets, smart contract developers now have the opportunity to build new types of smart contract applications like decentralized options protocols. The firm added that they could also create volatility-based rebasing tokens, synthetic assets for volatility exposure, or even advanced on-chain trading strategies. As DeFi markets evolve, dxFeed plans to expand ts options analytics and volatility data to include additional cryptocurrencies.

    The firm noted that it selected Chainlink to bridge its API data into DeFi markets because it is the "industry standard oracle solution and time-tested in production across leading blockchain applications worth tens of billions of dollars." 

    Daniel Kochis, Head of Partnerships at Chainlink Labs, said:

    "We’re excited to see data providers such as dxFeed successfully diversify their revenue streams and continue to introduce new datasets on-chain through the Chainlink Network. With smart contract developers eager to build decentralized applications around new high-quality and tamper-proof data, we are committed to supporting new and established data providers in selling their API data on-chain by providing a seamless integration process."

    KSM Starter Integrates Chainlink

    KSM Starter, Kusama’s primary launchpad, announced that it is integrating Chainlink Verifiable Random Function (VRF) into the launchpad’s automatic draw process. By integrating Chainlink’s oracle network, Kusama Starter can access a tamper-proof and auditable source of randomness needed to secure a decentralized and trustless draw system, the firm said. 

    In a blog post, KSM said that by embracing a more secure, transparent, and fraud-proof user experience, the KST community could rest assured that the IDO allocation system is completely fair and free from self-serving interference. Through using Chainlink, draw data will be open source and subject to community supervision, thus giving them the tools to take charge of KST’s decentralized autonomous organization, it added. 

    The firm went on to add that as the crypto-sphere gathers in anticipation for the upcoming parachain auctions, Kusama Starter is paving the way for the ecosystem’s success by creating the infrastructure needed to give early projects a high liquid start. To this end, integrating Chainlink and earning the community’s trust represents a first step in setting the tone for the ecosystem’s future.

    Kusama Starter Co-Founder, Siwon Kim, remarked: 

    “Integrating Chainlink was something of a no-brainer for us. As a launchpad advocating for decentralized projects, to not randomize draws in a decentralized way would be pretty hypocritical. In any case, we’re excited to set the bar high, and hope other launchpads follow our example.”

    Chainlink Price Is Expected To Reach These Levels

    If the Chainlink price breaks below the $16.50 support wall, it will drop all the way to the $14.50 support.