Chainlink Price Prediction: LINK Drops After Flashing Sell Signal

Daily Chainlink LINK Technical Analysis

Last Updated July 23rd 2021
3 Min Read
  • Chainlink price faces moderate resistance upfront.
  • LINK flashed green-nine candlestick in the TD detector.
  • Between March 25 and April 2, the Chainlink price climbed $24.75 to $32.30 as the buyers took complete control of the market. However, LINK then faced a slight correction after flashing the sell signal in the form of a green-nine candlestick in the TD sequential detector. During this correction, LINK dropped to $29.15.

    Chainlink Price Recovers Following Bearish Correction

    During the drop, Chainlink dropped to the 50-day SMA, wherein it found support at the 50-day SMA and then recovered to $30.50. As of now, it faces a moderate resistance at $31.50. The MACD shows that the current market momentum is positive so a further growth is expected.

    Image: LINK/USD daily

    link/usd daily chart 040521

    $31.50 is the most formidable resistance level up top, as per the IOMAP. Previously, at this level, 12,600 addresses had purchased 10.40 LINK tokens 

    Image: IntoTheBlock

    link/usd volume chart 040521

    $10% of Chainlink supply removed from Coinbase

    A Twitter account going by “Swaptpshi” noted that around 4 million Chainlink tokens have been removed from Coinbase.

    He tweeted:

    “4 million $LINK removed from coinbase today Around $124,000,000 worth of $LINK tokens probably not coming back soon Thats almost 10% of their entire supply”

    How Chainlink and Polkadot Will Work Together

    Polkadot has recently joined forces with Chainlink to incorporate its oracle service into its multi-chain environment. Different teams building on Polkadot can now count on a “flexible and reliable” solution to feed parachains with information.

    Chainlink Price Feeds have been enabled as a Substrate Oracle pallet and can be accessed by any other pallet integrated into a parachain. Hence, deployable applications will have “powerful new functionality." Polkadot noted:

    Chainlink Price Feeds will allow smart contract applications across the Polkadot ecosystem to access accurate, up-to-date and tamper-proof price reference data for powering new products and markets. 

    Parachains based on the Substrate network will have a direct connection to the “outside world” data provided by Chainlink through a runtime module. The pallet may be added with supported smart contract programming languages before or after connecting it to the Chain Relay. 

    Either of these approaches allow developers to leverage Chainlink Price Feeds with limited technical effort. This integration supports the many smart contract applications and parachain pallets requesting access to Chainlink Price Feeds across Polkadot’s environment. 

    Additionally, the team plans to work on a standard that would allow the use of the data feeds in all Polkadot parachains. The focus will be on an easy integration to leverage Chainlink’s four main features - high-quality data, decentralized infrastructure, secure nodes and cost-efficiency.

    Apps connecting to Chainlink’s pallet can add a collection of on-chain data sets for cryptocurrencies, FX rates, commodities and other assets. These applications will have multiple functions like settling cross-chain smart contracts and operating liquidation mechanisms. They can confirm the authenticity of reserves that collateralize a stablecoin as well.

    Head of Public Affairs at Parity Technologies, Peter Mauric, said that the recent integration could help Polkadot devs build the “next generation of high-performance decentralized applications.”

    Chainlink Price Is Expected To Reach These Levels

    WE expected Chainlink price to break above the $31.50 resistance barrier and reach around $35 again.