Chainlink (LINK) connects blockchain to real-world data
Chainlink (LINK) is a decentralized oracle network that links blockchain-based smart contracts to real-world data, APIs (Application Programming Interfaces), and events. While blockchain-based smart contracts cannot directly access external data, Chainlink provides a solution through its decentralized network of oracles.
Chainlink’s network is designed to provide accurate data, with each oracle incentivized through reputation scores. LINK tokens play a crucial role in this network, with node operators staking LINK as collateral to engage in network activities. In return, they earn rewards for providing accurate data, while users incur LINK fees for accessing oracle services.
Recently, the price of Chainlink (LINK) has corrected by nearly 20%, dropping to $18.69. Analysts believe this trend could persist. The decline follows Bitcoin’s drop below $65,000, with contributing factors including profit-taking and a market correction after a period of excessive optimism.
Chainlink (LINK) might face further losses
Moreover, the use of leverage by traders in the futures market likely amplified price swings, leading to a wave of liquidations. It remains unclear whether Bitcoin will maintain a stable price range amid ongoing volatility. However, what is certain is that many cryptocurrencies, including Chainlink (LINK), could see additional price declines if Bitcoin falls below $60,000.
Bitcoin ETFs saw their largest outflows to date, and according to JPMorgan analysts, the cryptocurrency market is still in “overbought territory,” suggesting that the worst may not yet be over. Data from BitMEX Research indicates that Grayscale’s GBTC saw massive outflows totaling over $1 billion in just two days.
JPMorgan’s analysts also noted that the slowdown in net inflows into spot Bitcoin ETFs contradicts the belief in a constant one-way flow of funds into these funds. Their analysis suggests that further profit-taking could occur, especially given the current market conditions.
With a decrease in net inflows and trading activity, Chainlink (LINK) could remain under pressure. As with many altcoins, speculative trading could further exacerbate its decline, especially as traders anticipate a broader market downturn and liquidate their altcoin holdings, including LINK. For now, investors should take a cautious approach.
Technical analysis for Chainlink (LINK)
After reaching highs above $22 on March 11, 2024, Chainlink (LINK) has lost more than 15%. The price is currently hovering above $18, but if it drops below this level, LINK could test the support at $16. Analysts suggest that if LINK remains under $20, the price will stay in the “SELL” zone.
Key support & resistance levels for Chainlink (LINK)
Based on the chart (as of August 2023), important support and resistance levels have been identified. The risk of further declines remains, but if LINK rises above $19, the next target is resistance at $20. A break above $22 could signal bullish momentum, with further gains ahead. However, if LINK drops below $18, it could signal a “SELL” and the price could target $17 or the key support at $16.
What supports the rise in the Chainlink (LINK) price
While the upside potential for LINK appears limited in the near term, if the price breaks above $20, resistance at $22 could become the next target. A move beyond $22 would help bulls regain control of the market. However, the overall sentiment in the cryptocurrency market is a significant factor in LINK’s price movement, and if investor confidence improves, Chainlink could benefit from a rise in price.
What suggests further decline for Chainlink (LINK)
The recent decline in Bitcoin has had a negative impact on Chainlink (LINK). As the leading cryptocurrency, Bitcoin’s decline typically results in a broader market downturn, affecting altcoins like LINK. Moreover, a notable drop in whale transactions for LINK suggests that large investors are becoming less confident in the cryptocurrency’s short-term prospects.
Chainlink (LINK) remains unpredictable and a highly risky investment, and as such, investors should remain cautious. Although LINK is holding above the $18 support level, if it drops again, the next significant support may be at $16.
Što kažu analitičari i stručnjaci?
Chainlink (LINK) continues to struggle following Bitcoin’s decline below $65,000, and analysts suggest that the loss of investor interest in accumulating LINK points to further price declines. Bitcoin ETFs saw major outflows this week, and over $505 million worth of long positions have been liquidated in the past 24 hours.
The slowdown in net inflows and declining trading activity are negative indicators for LINK, and according to JPMorgan analysts, the cryptocurrency market remains in “overbought territory.” Investors should be aware that Chainlink (LINK) is highly volatile, with significant price fluctuations in short periods, which can lead to substantial gains or losses. As always, conduct thorough research, understand the risks, and only invest what you can afford to lose when considering investing in LINK.
Izjava o odricanju od odgovornosti: Cryptocurrencies are highly volatile and investing in them can be risky. Never speculate with money that you cannot afford to lose. The information provided here is for educational purposes only and should not be considered financial or investment advice.
