Chainlink Technical Analysis: LINK Struggles To Enter $20

Daily Chainlink LINK Price Analysis

Last Updated July 29th 2021
2 Min Read
  • Chainlink price upside blocked by strong resistance at $20.
  • LINK has flipped the 20-day and 50-day SMAs from resistance to support.

The Chainlink price is currently blocked under the $20 resistance. Prior to this, LINK crashed from $20 to $13.70 between July 7 and July 20, flipping the 20-day SMA from resistance to support and reversed the parabolic SAR from positive to negative.

Chainlink Price Uptrend Blocked By Strong Resistance

Between July 21 and July 28, the Chainlink price had eight straight bullish sessions, wherein it jumped from $13.70 to $19.50. During this jump, LINK managed to:

  • Flip the 20-day and 50-day SMAs from resistance to support.
  • Reverse the parabolic SAR from negative to positive.
  • Flip the MACD from bearish to bullish.

As things stand, the 50-day SMA has prevented LINK from entering the $20 psychological level. 

Image: LINK/USD daily

LINK/USD daily chart 072921

As per IntoTheBlock’s IOMAP, the Litecoin price has a strong resistance barrier at $20. Previously, at this level 6,400 addresses had purchased almost 8.15 million LINK tokens at this line.

Image: IntoTheBlock

LINK/USD volume chart 072921

Gains.farm To Integrate Chainlink

Gains.farm, a decentralized leveraged trading platform on Polygon, has built the first hybrid architecture that combines Chainlink Price Feeds with their own custom-built Chainlink decentralized oracle network (DON). This helps in providing real-time, aggregated prices for their leveraged trading products. Gains.farm has been running live on the Polygon mainnet for a few months.

Decentralized leveraged trading platforms typically generate their own prices as part of their derivatives and futures contracts. They often use Chainlink Price Feeds as reference spot prices to compute the funding rate. This is done by looking at the difference between the spot price and the price of the futures contract.

Chainlink Price Feeds, or any price feeds, on Polygon are not updated every time a trade is made on the platform. So, the firm said it built an on-demand, real-time Chainlink DON that allows its users to trigger new oracle price updates on-chain and execute trading orders.

In a blog post, the firm said that it anchored the entire security to Chainlink Price Feeds because they "are built to provide maximum security, reliability, and accuracy.”

Seb, founder of Gains.farm, said:

“Chainlink has certainly the most experienced and helpful team in the oracle space, and their open-source tools are cutting-edge, reliable, and easy to work with. It’s hard to envision DeFi without them.”

Chainlink Price Is Expected To Reach These Levels

If the Chainlink price conquers the $20 resistance it should reach the 200-day SMA ($27.50).

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