Chainlink (LINK) fails to kick off a breakout repeatedly!
Chainlink (LINK) is a digital asset used to pay for services on the network. This network allows smart contracts on blockchain platforms like Ethereum to access external data and off-chain resources securely. One key feature of Chainlink is its use of a decentralized network of oracles responsible for providing external data to smart contracts.
These oracles are incentivized with LINK tokens to participate in the network and provide accurate data. This provides a more secure and reliable means of accessing external data, as compared to traditional centralized oracle systems.
Another key aspect of Chainlink’s tokenomics is its use as a means of paying for services on the network. Smart contracts on the Chainlink network use LINK tokens to pay oracles for the external data they provide. Users can also stake their LINK tokens to become a node operator and earn rewards for providing oracle services.
LINK has a fixed supply of 1 Billion tokens, with most already in circulation. The Chainlink network is designed to provide a more secure and reliable means of accessing external data for smart contracts on blockchain platforms. The use of the LINK token is a key aspect of this ecosystem.
There seems to be zero impact on Chainlink despite the ups and downs in the market movement. The price seems to be consolidating between a downtrend parallel channel that includes 100 EMA, and 200 EMA, with huge tolerance above and below the moving averages.
The historical price nature of Chainlink has become a worrying trend, and the duration has surpassed over eight months. The upper band of its consolidation has tanked from $9.0 in May 2022 to $8.95 in November 2022. Can Chainlink ever review? Read our LINK price prediction to know!
As the performance of the LINK token has been consistently downtrend despite the ups and downs of the market, with the positive sentiment for the new year failing to push it above the 100 EMA curve, the outlook for Chainlink is gradually turning grim. RSI reached an overbought level even with the prices tumbling near 100 EMA.
With such a minor state of price hikes, the profitability factor for Chainlink is competitively decreasing. It took Chainlink 20 days to cover the gains, while the 200 EMA curve is still highly short of the current values. Hence, buyers should trade with extreme caution before attempting to take investment in Chainlink based on its low prices.
