On February 17, the price of Chainlink (LINK) broke out of a five-week-long consolidation period and rose by around 32% above the support level of $6. However, when the price reached around the $8 mark, it was rejected and fell by approximately 13% between February 20 and March 2. As a result, a bullish flag pattern has been formed, suggesting that the LINK price may increase by around 25% to reach the $10 mark.
Currently, Chainlink is being traded at $7.389, a decrease of 0.37% from the previous day. Additionally, the token's market capitalization has decreased by 0.46% over the same period, and there are indications of reduced trading activity in the LINK market.
Chainlink is a platform that acts as a layer of abstraction for blockchains and supports smart contracts that are universally connected. By using a decentralized oracle network, it enables secure interaction between blockchains and external data feeds, payment methods, and events. This is crucial for providing off-chain information that complex smart contracts need to be successful in the digital agreement space.
The Chainlink Network is supported by a large open-source community of individuals such as data providers, node operators, smart contract developers, researchers, and security auditors. The ecosystem is focused on ensuring that all node operators and network contributors can participate in a decentralized manner.
Chainlink Launches Platform To Assist Web2 Connect With Smart Contracts
Chainlink, a platform for Web3 services, has announced the release of a new platform that is self-service and serverless. The platform is designed to assist developers in connecting their decentralized applications (dApps) or smart contracts to any Web2 API.
Tomorrow, we'll go behind the scenes of Chainlink Functions on the latest #Chainlinked Twitter Spaces. Find out:— Chainlink (@chainlink) March 1, 2023
-Why Functions was created
-Key features for builders
-New use case possibilities
Set a reminder ⏰ ⬇️https://t.co/DFJrI6DBYU pic.twitter.com/nsHfKn31r6
Chainlink has launched a new platform called Chainlink Functions, which allows developers to run customizable computations on Web 2 APIs through its network in just a few minutes. The Chief Product Officer at Chainlink Labs, Kemal El Moujahid, stated that the aim is to enable developers to combine the benefits of Web3 smart contracts with the power of Web 2.0 APIs. This will create a significant opportunity to build applications that combine the strengths of both smart contracts and Web 2.0.
The new platform, Chainlink Functions, will allow developers to easily utilize decentralized infrastructure, giving them access to traditional Web 2.0 APIs such as Amazon Web Services (AWS) and Facebook's Meta platform. This will enable developers to enjoy the advantages of these services while building on a decentralized platform.
Chainlink's new platform lets web3 projects connect to Web 2.0 systems like AWS and Meta https://t.co/E0qo4ci6S0 by @jacqmelinek— TechCrunch (@TechCrunch) March 1, 2023
Developers using Chainlink Functions will have access to Chainlink's decentralized oracle network, which allows smart contracts to interact securely with off-chain data sources. This will enable developers to create more intricate and sophisticated dApps that can interact with real-world data securely and in a decentralized manner.
Looking for more inspiration?— Chainlink (@chainlink) March 1, 2023
Developers across the ecosystem are starting to share the off-chain connections they've built and showcasing how any builder in any vertical can #UseChainlinkFunctions.
Explore the new community website👇https://t.co/EFiebQtfkJ pic.twitter.com/vyMcVuvA2h
Chainlink Functions will address several challenges in the blockchain industry, including scalability and interoperability. By providing developers access to traditional Web2 services, they can build more scalable and interoperable decentralized applications. This, in turn, will drive the adoption of blockchain technology as it makes it more practical for real-world use cases.
LINK Price Forms A Bullish Flag As It Prepares For A Breakout
LINK/USD Daily Chart
TradingView Chart: LINK/USD
After liquidity around $8 went uncollected, the price of LINK dropped to around $7 in February as investors waited for a dip to buy. However, in March, the price rebounded almost 7%, recovering most of the lost ground from late February.
This price action has led to forming of a bullish flag pattern, which is positive for extending an uptrend. The LINK price is currently consolidating within two parallel trend lines in the opposite direction of the uptrend before breaking out and continuing the uptrend.
Currently, LINK is trading at a price point of around $7 and facing immediate resistance at the upper boundary of the chart pattern at $7.5. A daily candlestick close above this level will open up the path for the LINK price to target higher levels.
If the buyer momentum continues, the LINK price may increase further beyond the upper boundary, leading to more gains. This could potentially push the price to face resistance at the $8.0 level. If the buying momentum remains strong, the price may increase by around 10%, reaching the target of $9.5, which would complete a 25% breakout from the current levels.
The LINK price found strong support at the 50-day Simple Moving Average (SMA) level, and this zone acted as a support level for the price. The 200-day SMA at $6.995 and the 100-day SMA at $6.767 also provided additional support levels. These levels acted as breathing spaces for bulls to recover and re-enter the market with more strength.
The MACD indicator revealed that the buyers were still dominating, as it remained in the positive region above the mean line. However, if investors start selling, the LINK price could drop below the SMAs and move downward, breaking out of the lower boundary of the flag pattern. If this happens and the price falls below the $6.4 mark, the bullish outlook would be invalidated for the short term, and the price may drop further to the $5.4 swing low before rebounding again.
The RSI was moving downwards, indicating that buyers were exiting the market, and the price strength at 50 was a cause for concern, as it suggested a potential downtrend. The red histograms on the chart further confirmed the bearish sentiment.