Chainlink (LINK) Price Analysis: Trails BTC But on Cusp of $14?

The Chainlink (LINK) price is at breakeven versus the greenback in the last week of trading but down three percent on the last day of trading. Like most tokens, LINK is under-performing BTC, losing 10 percent week-to-date.

Chainlink (LINK) Overview

Noticeably, the Chainlink price performance remains decent despite recent blips.

For instance, in the last month, the token is up 25 percent and 3.8X year-to-date versus the greenback. Partly, this follows months of fiat currency debasement as a means to arrest the coronavirus pandemic.

Moreover, its performance is superior to BTC and ETH within the same period even if the two leading coins have been registering impressive gains in the last month or so.

From the daily chart, the Chainlink price is moving inside a rising channel after early October bullish breakouts. Participation levels are also average but decent, picking up in November after flat-lining in October even after the sharp breakout.

Price gains haven’t been perpendicular. The ideal bull target is $20. On the downside, losses below $7 would confirm the past 2.5 months’ price declines as a bear flag, marking Aug 2020 high as a peak.

Chainlink Market Movers

Behind Chainlink’s resilience and investor confidence lies in its use case. Many consider the digital asset as a good investment. Ethereum and most smart contracting platforms are siloed.

As such, its smart contracts can only access information within the chain. For extension of their functionality, there ought to be a reliable, secure, and tamper-proof bridge to link external data to the blockchain to trigger smart contract conditions.

Chainlink was the first company to offer this solution. However, in the last few years, it has struck partnerships with over 270 different companies including Google Cloud, Oracle, China’s Blockchain Service Network (BSN), and other heavyweights.

In the past few days, Chainlink has partnered with several DeFi firms and gaming dApps including SynLev—to power its trustless leveraged synthetic platform, Synthetix, Axie Infinity, and the Base Protocol.

They are also funding several initiatives, notably offering a grant to support ACRE Africa and Etherisc joint venture.

Chainlink (LINK) Price Analysis

The Chainlink price is consolidating around last week’s highs. Following gains above $13.3 early this week, there hasn’t been a follow-through by bulls. Instead, prices have recoiled, retesting previous resistance now support.

Yesterday’s bull bar shows market equilibrium and possible exhaustion. The Doji-like bar had long lower wicks hinting of demand in lower time frames. Besides, it had markedly high trading volumes.

As such, buyers must drive prices beyond yesterday’s high of around $14.2. If not, Nov 18 bar may signal the end of a trend because of the climactic trading volumes and insufficient demand to sustain prices at spot levels.

However, if prices break above $14.2, the first bull target will be the Aug 30 high of around $17.7, and later $20.

Conversely, losses below the 20-day moving average and the support trend line could see the Chainlink price tumble back to $7, or the 78.6 percent Fibonacci retracement level of the July to Aug 2020 trade range.

Chart courtesy of Trading View

Disclaimer: Views and opinions expressed are those of the author and are not investment advice. Do your research.