Chainlink (LINK) awaits a breakout after long consolidation!
Chainlink is not as popular as Bitcoin and Ethereum, but it is famous for its decentralized Oracle network. The Chainlink decentralized protocol was launched in 2017 to solve smart contracts connectivity. The decentralized blockchain ecosystem cannot access real-world data; Chainlink aims to solve this issue with the Oracle system.
Most decentralized ecosystems or smart contracts cannot execute real-world data from external resources, which creates a wide gap between the off-chain and on-chain platforms. Chainlink aims to bridge the gap with its network.
Chainlink is built on the Ethereum network, a popular choice for NFT, dApps, and DAO development. Oracle of this platform can connect to real-world data resources outside the network that acts as a third party to facilitate the link between on-chain and off-chain data.
Oracle is a revolutionary idea that breaks the barrier of blockchain smart contracts by giving access to external resources and makes a hybrid smart contract with the combination of on-chain and off-chain resources, which will be more helpful than regular decentralized ecosystems.
LINK is a native coin that is used to pay gas fees on the platform. If you are interested in investing in LINK, read our technical analysis.
The daily chart shows LINK has been consolidating between $8 and $6.6. Currently, Chainlink is trading at $7.90, which is around the resistance. Indeed, it can break the resistance and find the next resistance around $9.36, but we think it will be a risky investment because it may even come down to the level of $6.6.
If you are optimistic about LINK for the short term, you can set a stop loss and a target while investing. Most technical indicators are bullish at this time. Will it continue to stay bullish and cross the $8 mark? Read our Chainlink prediction to know!
For the last six months, Chainlink on the weekly chart has been consolidating within a range. The last few weekly candles have formed on the upper Bollinger Bands with positive MACD and RSI that suggest positive momentum for the long term. However, we do not think it is an ideal time to invest in LINK tokens unless it faces resistance decisively.
