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Price Analysis

Chainlink Dominant, LINK Prices Slide as Bulls Target $16



Price Analysis - Chainlink

The Chainlink price remains wavy inside a rising channel and a bull bar of last week.

Despite bear attempts, LINK bulls have the upper hand judging from the candlestick arrangement in Q4 2020.

At the time of writing (Dec 21), the LINK/USD price is stable in the last week.

From this, there may be an opportunity for buyers to ramp up the dips with targets at immediate resistance levels below $20.

Chainlink (LINK) Price Overview

As mentioned earlier, the LINK/USD pair is bullish in the immediate term.

On the downside, the three-month main support trend line offers support for optimistic bulls. Within a rising channel, the 20-day moving average (middle BB) can’t be a proper momentum gauge in this current consolidation.

A break-out above the three-week resistance trend line, on the other hand, opens up the LINK/USD prices to $16, the highs of the three-bar bear reversal pattern of Nov 23 to 25.

Noticeably, the better part of December is marked with tapering trading volumes, different from the second half of November.

The result is not only low volatility but the LINK/USD price oscillating within narrow ranges inside Nov 2020 trade range.

Chainlink (LINK) Market Movers

In DeFi, oracles play a critical role.

Oracles are bridges connecting the trustless world of financial dApps with vetted and tamper-proof data.

Chainlink is a leader in this niche. Their solution is used by over 30 different DeFi projects, collaborating with tech leaders like Google, Oracle, and Intel. With every connecting project using LINK, the token benefits, translate to profits for holders.

Even with its market leader status, there are specific on-chain metrics that may explain falling volatility.

A recent report shows that the number of monthly active users, GitHub activity, and related Google searches have been cooling off in the past few weeks.

Often, rallying LINK/USD leads to more interest from investors. When they jump on-board, the number of MAUs rise in tandem, creating a virtuous circle, fanning bulls.

Meanwhile, the number of DeFi protocols using its decentralized oracles is rising. The latest is the Bounce Protocol, a decentralized auction protocol that will use Chainlink to “determine the outcome of prediction markets and establish exchange rates for auctions.”

Last week alone, over five projects revealed that it was using Chainlink’s solutions. They were Moonbeam Network, Cryptex Finance, HealthTrends AI, Swash, and others.

Chainlink (LINK) Price Prediction

Chainlink Dominant, LINK Price Slides as Bulls Target $16

The Chainlink price is ranging inside the November trade range, inside an ascending channel, and within a descending triangle.

Technically bullish, the Chainlink price is, nonetheless, range-bound—even bearish. Specifically, there has been no follow-through of the Dec 16 bull bar confirming the double-bar bullish bar reversal of Dec 11 and 12.

Still, for an aggressive trader, the LINK/USD price dip can be another opportunity to load up with conservative targets at Dec 17 highs of $14.6 and Nov 2020 highs of $16, respectively.

As per volume analysis, buyers have the upper hand provided prices trend within Dec 16 and 17 trade range with low trading volumes.

There could be room for more upside especially if the breakout above the triangle is with high trading volumes, exceeding those registered on Dec 17 (Binance data).

Conversely, sharp losses below the three-month support trend line invalidate buys, setting up bears aiming at $11 and $10, respectively.

Chart Courtesy of Trading View

Disclaimer: Opinions are those of the author, and are not financial advice. Do your research.

Passionate about Blockchain, Crypto, Blockchain, and Bitcoin. Excited of what lies ahead. Advocating adoption. HODLer!

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