Data Signals Major Red Flag As Chainlink (LINK) Rises 8% Over Last 7 Days
With a price increase of 8% over the last seven days, Chainlink (LINK) is currently one of the best performers on the crypto market, behind Litecoin (LTC) and BNB. Remarkably, the trading volume of LINK has dropped 20% in the last 24 hours to just $389 million.
Chainlink was trading at $6.66 at press time, showing a restrained bounce from the bottom of a channel that LINK has been in since early May. The lower bound of the channel is at $5.35, while key resistance for the LINK price is currently at $9.52.
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At the current price, LINK is hovering just below the 50-, 100-, and 200-day simple moving averages (SMAs). With an RSI of 49.5 in the 1-day chart, LINK is in neutral territory.
However, the bounce of the last three days should be taken with a grain of salt. On-chain data from Santiment shows that there has been a significant increase in exchange inflows following the recent price surge. Nearly 15 million LINK were transferred to known crypto exchange wallets in the last 24 hours.
In the 1-week chart LINK / BTC, the token is in a crucial moment: will LINK be able to break through 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” type moment for Chainlink.
Fundamental Remains Strong For Chainlink (LINK)
As Chainlink faces a pivotal moment, the fundamentals seem stronger than ever. In about two weeks, Chainlink will launch its staking feature. Starting December 06 at 12pm ET, LINK owners and node operators will be able to earn rewards to increase the security of decentralized oracle services.
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As a result of the announcement, the project has seen a striking 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/ The capabilities of #Chainlink oracle networks continue to expand to support more advanced data and compute services.
At the same time, the cost of oracle services continues to decline as a result of several key initiatives and industry trends: pic.twitter.com/accD4jiWFf
— Chainlink (@chainlink) November 23, 2022
Moreover, Chainlink is expanding its platform to include even more services, such as DECO for private transactions, FSS for MEV mitigation, and CCIP for cross-chain communication.
Using the Cross-Chain Interoperability Protocol (CCIP), thousands of applications across the Web3 space are expected to interact with each other, sending and receiving tokens, instructions, messages and more.
Just recently, crypto exchange Huobi announced that it is using Chainlink’s proof of reserve to help provide enhanced transparency around its wrapped HBTC token.
On November 18, the Binance chain team revealed that Chainlink’s oracles are essential for developers in the BNB chain ecosystem. Chainlink is the most widely used oracle solution on the BNB chain with more than 161 million data points delivered, over 230 dApp integrations, and more than $780 billion in value handled.
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