With a price increase of 8% in the last seven days Chainlink (LINK) is currently one of the best performers in the crypto market, behind Litecoin (LTC) and BNB. Notably, over the past 24 hours, LINK’s trading volume is down 20% to just $389 million.
Chainlink was trading at $6.66 at press time, showing a muted recovery from the bottom of a channel LINK has been in since early May. The lower boundary of the channel is $5.35 while the key resistance for LINK price is currently $9.52.
At the current price, LINK is hovering just below the 50-day, 100-day, and 200-day simple moving averages (SMAs). With the RSI at 49.5 on the 1-day chart, LINK is in the neutral territory.
Chainlink (LINK) positions on a channel, 1-day chart. Source: TradingView
However, the upswing of the last three days should be taken with a pinch of salt. On-chain data from Santiment shows that FX inflows have increased significantly following the recent price surge. Almost 15 million LINK were transferred to popular crypto exchange wallets in the last 24 hours.
Exchange inflows spiked by Chainlink (LINK). Source: Twitter
In the 1-week chart LINK/BTC the token is at a crucial moment: will LINK be able to break the critical trendline resistance or will it be the fourth rejection in the last 13 months. As one analyst noted, this could be a “make it or break it” moment for Chainlink.
Chainlink/Bitcoin ahead of a make it or break it moment, 1 week chart. Source: Twitter
Fundamental Remains Strong for Chainlink (LINK)
As Chainlink faces a pivotal moment, fundamentals seem stronger than ever. In about two weeks, Chainlink will launch its staking feature. Starting December 6 at 12:00 PM ET, LINK owners and node operators can earn rewards to increase the security of decentralized oracle services.
As a result of the announcement, the project has seen a remarkable increase in social engagement. However, Chainlink Economics 2.0 will not only introduce staking, but also improve access to Chainlink services and technical performance.
1/ #Chainlink Oracle Networks capabilities continue to expand to support more advanced data and computing services.
At the same time, the cost of Oracle services continues to decrease due to several key initiatives and industry trends: pic.twitter.com/accD4jiWFF
— Chainlink (@chainlink) November 23, 2022
In addition, Chainlink is expanding its platform with even more services, such as DECO for private transactions, FSS for MEV mitigation, and CCIP for cross-chain communication.
With the Cross-Chain Interoperability Protocol (CCIP), thousands of applications are expected to interact with each other across the Web3 space, sending and receiving tokens, instructions, messages, and more.
Just recently, crypto exchange Huobi announced that it is using Chainlink’s Proof of Reserve to provide enhanced transparency around the wrapped HBTC token.
On November 18, the Binance chain team unveiled the Chainlink oracles of are essential for developers in the BNB chain ecosystem. Chainlink is the most widely used oracle solution on the BNB chain with 161+ million data points delivered, 230+ dApp integrations and more than $780 billion in managed value.
Source: Crypto News Deutsch