Chainlink Price Prediction: LINK Retreats From The 20-day SMA

Daily Chainlink LINK Technical Analysis

Last Updated July 23rd 2021
2 Min Read
  • Chainlink price has flashed multiple sell signals.
  • Strong resistance lies at the 20-day SMA ($42).
  • Since May 10, the Chainlink price has crashed from $52.25m to $41. During this crash, Link has managed to flip the 20-day SMA from support to resistance. Prior to this, LINK price jumped from $31 to $52 between April 25 and May 9, gaining ~65% in its overall valuation.

    20-day SMA Prevents Chainlink Price Growth

    The Chainlink price has flashed multiple sell signals in the daily chart:

    • The 20-day SMA has flipped from support to resistance.
    • The MACD shows increasing bearish market momentum.
    • The parabolic SAR has reversed from positive to negative.

    Image: LINK/USD daily

    LINK/USD daily chart 051721

    As you can see, the Chainlink price faces strong resistance at the 20-day SMA ($42). Previously, at this level, ~10,000 addresses had purchased almost 15.22 million LINK tokens. 

    Image: IntoTheBlock

    LINK/USD volume chart 051721

    Chainlink VRF And ZeroGravity IDO Integrations

    0.Exchange DEX has recently integrated the Chainlink Verifiable Randomness Function (VRF) to generate and deliver a secure and verifiable source of on-chain randomness for smart contracts. By integrating Chainlink VRF, O.Exchange noted that it ensures that all Launchpad participants have a provably fair and unbiased chance at being selected as a winner of various IDO allocations. 

    Chainlink VRF works by linking 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 0.exchange smart contracts only accept the random number input if it has valid cryptographic proof, and the cryptographic proof can only be generated if the VRF process is tamper-proof. This provides users with automated and verifiable assurances directly on-chain that each 0.exchange IDO allocation using Chainlink VRF for randomness is provably fair and cannot be tampered with by the oracle, outside entities, or the 0.Exchange team. 

    Users who participate in upcoming ZeroGravity IDOs will be qualified to receive random rewards based on the number of ZERO tokens they hold. Winners are then chosen based on provably random numbers generated by Chainlink VRF. This allows users to independently audit the result of every draw, creating a verifiably fair distribution model — the key to ensuring trust in the 0.Exchange ZeroGravity Launchpad platform. 

    The Head of Zero Exchange, Gram Custodian, said: 

    In traditional Launchpad distributions, auditability and fairness were simply not present. With Chainlink now a foundational component of the 0.Exchange ecosystem, we can now provide users with cryptographic guarantees on the unbiased and ungameable distribution of allocations.

    Chainlink Price Is Expected To Reach These Levels

    Since the Chainlink price is going through a negative market sentiment. Looking at the IOMAP, LINK will likely drop to the 50-day SMA ($38).

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