Chainlink is the bona fide oracle for any dApp launching on Ethereum and other supported chains.
It is easy to see why.
The platform is among the first to propose and implement an oracle solution for siloed smart contracts.
Out of this first-mover advantage, Chainlink carved out a sizeable market share, a reason why it is one of the most valuable DeFi tokens around.
As of August 30, Chainlink had a market capitalization of $11.2 billion, enjoyed unparalleled liquidity transacting over $715 million in trading volumes in the past 24 hours.
Chainlink Market Performance and Price Status
Over the years, especially coinciding with the exponential rise of DeFi to command over $80 billion in TVL, Chainlink’s prices posted tremendous gains.
Subsequently, it lifted the token’s valuation to spot levels, even attracting more partners.
The Network Effects and the rock-solid foundation of Chainlink make it a choice for more projects, directly injecting value due to the resulting demand of LINK–the utility token in the growing ecosystem.
Technically, Chainlink could post more gains in the days ahead. Nonetheless, some traders are cautiously optimistic, saying there could be a pullback, especially if Bitcoin finds headwinds after steady increases in August 2021.
Therefore, the resulting apprehensiveness is bogging bulls, a slowdown resulting in consolidation within tight trading ranges–signaling price peaks.
Ideally, following the sharp uptick of trading volumes and rapid price expansion of early August, Chainlink traders expected sharp, near-perpendicular surges. It didn’t materialize, and now, there hasn’t been a follow-through above $30—a price level acting as liquidation.
As we advance, Chainlink buyers expect prices to find strong support at around $22—July 2021 highs. This may be the foundation, a launching pad for a close above $30 in a buy trend continuation, reflecting interest as seen in early August.
Chainlink Price Action Is “Wonderful”
Even with this patience, one trader on Trading View thinks Chainlink is a “parabola” that’s should form part of a trader’s portfolio.
Switching to the algorithmic chart of LINK/USDT, the trader describes price action as “wonderful.”
He notes that LINK has since posted incredible gains since the crypto winter of 2018.
Then, Bitcoin and altcoins contracted from their peaks with ICO coins—including LINK—shrinking by over 90 percent. However, as the scene matured, Chainlink’s value proposition continues to prop and propel the token’s valuation higher to spot rates.
At present, LINK prices are inside an ascending channel, waving—as expected with every tradable asset—but steadily rising.
Chainlink Bulls Exhausted?
Even so, not every trader is convinced about Chainlink at the time of press. For example, one analyst on Trading View, basing his analysis in the 4HR chart, thinks LINK prices might recoil from spot rates, retracting from August 2021 highs.
In his assessment, $24 is the immediate support level. Therefore, if there is a conclusive dip, the odds of LINK sinking towards $22—July 2021 highs remain high.
Aforementioned, LINK prices are consolidating in a bullish breakout pattern below August 2021 highs of $30. For buy trend continuation, LINK bulls must sustain prices above $22—a crucial support level picked out by the trader.
This trading idea also syncs with another trader’s prognosis on Twitter. The analyst is convinced Chainlink has peaked. As such, it might drop below $22 to as low as $15 in a healthy pullback.
#LINKUSDT short idea.
Close above point D is stop. pic.twitter.com/A0Q9I02d5E
— TraderDavis (@davis_trader) August 26, 2021
On the flip side, a sharp reversal from spot levels to above $30 may see LINK’s fortune change. In that case, Chainlink might soar to $54 in a buy trend continuation pattern.
Charts courtesy of Trading View
Disclosure: Opinion is that of the author. Do your own research.
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