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The price of Chainlink has been increasingly volatile since the beginning of the month. The price has attempted several uptrends and broken past weekly resistance levels. Currently, LINK is trading above crucial support levels, and an uptrend could be looming.
LINK was trading at $13.20 at the time of writi8ng, after gaining slightly during the past 24 hours. During the past three months, LINK has dipped by over 60%. LINK is also down by 75% from its all-time high of $52.70 created in May last year.
Chainlink gears for an uptrend
Following the increased volatility across the crypto market, LINK’s price has consolidated between the demand levels of $10 and $14. Following the market outlook, there is a possibility that the price of LINK will push higher. However, its price could test the lower levels before it bounces back.
If LINK’s price makes an uptrend, it could test the upper resistance level at $14.90. The price could also push beyond $15.70. At this price, buyers could push the prices towards higher levels, breaking barriers that have not been broken out of in recent days.
If LINK makes an uptrend, the growth could be capped at $15.70. However, if the price makes such an uptrend, there is a chance that the buyers could rally the selling pressure, and LINK could decline towards previous support levels. Following the downtrend experienced by LINK during the past few weeks, the traders could attempt to break even, which could result in reduced selling pressure.
While an upside potential is strong, LINK could also decline towards lower levels. The support levels are weak, and there is a chance that if LIONK dips, the price could push even lower. If the price retraces, LINK will drop to $10.50. This could lure buyers into purchasing more tokens when the prices are low.
The potential for LINK’s upside is limited by the current performance of the cryptocurrency market. The crypto market has been inactive lately, lowering the number of new addresses buying LINK. The number of new wallet addresses joining Chainlink has declined by 56% during the past three months, showing that the current price levels are not attractive to investors.
Lower lows could be tested despite the bullish outlook at LINK’s prices. If the price dips below $10.82, there is a chance that the bullish thesis will be eradicated, and Chainlink’s price could explore new lows.
GSR partners with Chainlink
Chainlink’s price is gaining not only because of the support garnered from buyers but also from the developments in the Chainlink blockchain. The blockchain has been gaining adoption across the industry, which is driving the price gains, although it is doing this by small margins.
GSR is a market-making platform, and through this integration with Chainlink, the platform wants to contribute price data for decentralized oracle networks (DONs). These will support decentralized finance (DeFi) and smart contracts on the platform.
The partnership between GSR and Chainlink is proof that the blockchain sector is gaining a high level of interoperability and cross-chain platforms. The co-founder of Chainlink, Sergey Nazarov, commended this relationship for the benefits it would contribute to GSR and other financial platforms that want to gain access to real-time data.
In the announcement, Nazarov stated that “high-quality market data is vital to the growth of the multi-chain ecosystem.” The Chainlink oracle nodes have become highly popular in the smart contracts sector. These nodes deliver timely data to platforms building on the blockchain sector.
To learn more visit our Investing in Chainlink guide.
Ali is a freelance writer covering the cryptocurrency markets and the blockchain industry. He has 8 years of experience writing about cryptocurrencies, technology, and trading. His work can be found in various high-profile investment sites including CCN, Capital.com, Bitcoinist, and NewsBTC.