Chainlink Technical Analysis: LINK Drops Towards $17.50 Support Wall
Daily Chainlink LINK Price Analysis
- Chainlink price can drop some more before getting oversold.
- Since June 15, LINK has managed to drop by ~$7.
On June 15, the Chainlink price met resistance at the 20-day SMA and fell from $25 to $21.50 till June 20. Prior to that LINK crashed from $32 to $21.50, between June 4 and June 11 and reversed the parabolic SAR from positive to negative.
Chainlink Price Looks To Fall Towards $17.50 Support
This Monday, the Chainlink price dropped by $3 having fallen from $21.50 to $18.50. LINK may drop some more before the relative strength index (RSI) goes into the oversold zone. The parabolic SAR shows that the current market sentiment is negative.
Image: LINK/USD daily
The Chainlink price has crucial support at $17.50. As per the IOMAP, 3,000 addresses had purchased almost 2.45 million LINK tokens at this level.
Fei Protocol Integrates Chainlink Price Feeds
Fei Protocol, a scalable and decentralized stablecoin platform, recently announced that it upgraded the protocol’s primary oracle mechanism to oracle network Chainlink. Fei is now leveraging the widely used ETH/USD Chainlink Price Feed as the reference price. This would further increase the security and reliability of FEI, maintaining its $1 peg in a decentralized manner.
Fei Labs currently supports two new Chainlink Price Feeds for FEI/ETH and TRIBE/ETH, enabling other DeFi protocols to easily add support for the FEI stablecoin and Fei Protocol’s governance token TRIBE. In a blog post, Fei noted that it chose Chainlink because of its "time-tested oracle" infrastructure that provides high-quality data with extensive market coverage and high availability.
The firm added that Chainlink already secures tens of billions of dollars in user funds for top DeFi projects like Aave and Synthetix, and supports many DeFi projects that collectively use and fund shared Price Feed oracles.
Previously, Fei Protocol used the Uniswap ETH/USDC time-weighted average price (TWAP) as the primary oracle. However, after further research and investigation of various oracle solutions, Chainlink was identified as the preferred solution due to its improved market coverage and ability to achieve price precision without sacrificing security, added Fei.
The protocol added:
One of the other advantages of the upgrade is the ability of Chainlink to help Fei Protocol quickly increase support for additional assets and/or new blockchains in the future, if the community wants to ensure support for such initiatives. Chainlink has a wide range of live price feed oracles across many blockchains, making Fei scaling more seamless and secure.
Chainlink Price Is Expected To Reach These Levels
As we can see, the Chainlink price is going to drop towards the $17.50 support wall. A further break will take LINK towards the $16.50 support.