Chainlink Technical Analysis: LINK Drops After Entering Resistance At $20

Daily Chainlink LINK Price Analysis

Last Updated July 23rd 2021
2 Min Read
  • The Chainlink price is hovering in the upper half of Bollinger Band for the last three days.
  • LINK volatility has gone down significantly.
  • The Chainlink price had jumped from $16.85 to $19.50 between June 26 and June 29. During this climb, LINK managed to reverse the parabolic SAR from negative to positive and the MACD from bearish to bullish.

    Chainlink Price Hovers In Upper Bollinger Band

    The Chainlink price has bounced up from the $18 support line on June 6 and reached the $20 resistance barrier. During this jump, LINK flipped the 20-day SMA from resistance to support. As a result, Chainlink has managed to enter the upper Bollinger Band for the first time since June 4. The MACD indicates sustained bullish momentum and the Band has started to contract to show decreasing volatility.

    Image: LINK/USD daily

    LINK/USD daily chart 070821

    The Chainlink price faces the strongest resistance at 50-day SMA ($22). As per IntoTheBlock’s IOMAP, 5,400 addresses had purchased almost 20 million LINK tokens at this level. 

    Image: IntoTheBlock

    LINK/USD volume chart 070821

    Thales Integrates Chainlink Price Feeds 

    Thales, a permissionless and non-custodial binary options trading platform, announced it is integrating Chainlink Price Feeds on Ethereum.

    By integrating Chainlink’s oracle network, Thales said that it would have access to high-quality, tamper-proof price feeds needed to resolve the outcomes of binary options markets. 

    In a blog post, Thales said that Chainlink Price Feeds would assure its users that the resolution of the binary options markets is completed in an accurate and decentralized way. It said:

    "We chose Chainlink as our go-to oracle solution because its infrastructure is seamless to integrate and time-tested in production. Chainlink already secures leading DeFi protocols responsible for billions of dollars in smart contract value, maintaining robust security and high availability even amidst unexpected events such as exchange downtime, flash crashes, and data manipulation attacks using flash loans."

    Thales secured initial funding round from Synthetix to deliver a superior trading experience for binary options on Ethereum. Binary options are a simple solution for having a fixed-payoff derivative that’s easy to understand and offers capped downside protection incorporated directly in the instrument’s design.

    To secure the price feeds that settle binary options markets, Thales noted that it requires fresh asset prices supplied directly on-chain securely. It said:

    "Fair market asset prices should reflect a volume-weighted average from all trading environments, so we need to make use of an oracle to fetch aggregated price data off-chain and deliver it on-chain to be consumed by Thales’ smart contracts."

    Danijel, Thales Co-founder, said:

    “Working with the Chainlink Labs team, I can say this is the most organized group I’ve ever seen. They treat us like an equal in a very professional way, always leaving open ways to communicate with them. On a few occasions, they even reached out proactively. I love how they don’t give no as an answer and try to look for mutually beneficial situations.”

    Chainlink Price Is Expected To Reach These Levels

    The Chainlink price is stuck between the 20-day SMA and the $20 resistance barrier. It looks like LINK is going to keep hovering horizontally.

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