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Investors are waiting for a rally after the breakout in Chainlink

Analytics

www.cryptonewsz.com 08 November 2022 11:13, UTC
  
Reading time: ~2 m

The biggest problem that the blockchain industry faced was its inability to interact with real-world data. It only works in on-chain technologies, increasing the risk of wrong data and manipulation. Chainlink aims to solve this problem with a network that combines on-chain and off-chain data outside the Ethereum blockchain ecosystem.

It uses an Oracle platform with nodes that act as a bridge to connect on-chain and off-chain data. It uses real-world data from third-party sources and combines it with on-chain smart contracts to fill the gap between real-world and blockchain technologies. It also rewards the oracles/nodes which provide accurate information.

Here smart contracts play a vital role because it relies on an automation system to evaluate and execute the data on a predetermined agreement. It makes the process decentralized without any third-party intermediary on the network.

Unlike Ethereum, Chainlink offers an API integration that enables external blockchains to integrate with Chainlink and exchange data feeds for payments, events, and many other real-world use cases. If you are interested in investing in Chainlink technology, please read our technical analysis.

At the time of writing this post, LINK/USD is trading around $8.35. In the last two months, it has formed support around $6.6, but after a short uptrend, it faced a resistance of around $9.5, which is a crucial level for the short term. The candlesticks are still forming around the resistance level on the upper Bollinger Band, and most other technical indicators are bullish at this moment.

So it is a crucial time; if it breaks the resistance decisively, you can trade for the short term with a higher target, but if it cannot break the level, then it will come to the support of $7.4. And that would be a good time to buy for the short term, with a target of around $9 based on Chainlink predictions.

On the weekly chart, it has formed support around the baseline of the Bollinger Band, and the last three weekly candles are green, which suggests a strong bullish momentum for the long term. Still, you should not invest until it breaks the resistance level, even on the long-term chart. You can consider it long-term bullish if it decisively breaks the level of $10.


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