Chainlink (LINK) sellers regain control over the price action!
The vision behind Chainlink’s LINK token is to create a decentralized oracle network that connects smart contracts on the blockchain to real-world data, events, and systems. The network aims to provide secure and reliable data to decentralized applications and smart contracts, enabling them to interact with the outside world. LINK is the native token of the Chainlink network, and it incentivizes node operators to provide accurate and trustworthy data to the network.
Node operators earn LINK tokens as rewards for their contributions, which helps to ensure the quality and reliability of the network’s data. The decentralized network of oracles helps to reduce the risk of data manipulation and censorship, ensuring that smart contracts can be executed fairly and transparently.
Chainlink envisions bridging the gap between the decentralized world of blockchain and the centralized world of real-world data, making it possible for smart contracts to fully unlock their potential. By doing so, Chainlink aims to enhance the capabilities and efficiency of decentralized applications and systems, promoting the adoption and growth of the decentralized economy. Ranking 21st, the LINK token holds a market capitalization of $3,547,801,026 with just 51% of token liquidation of its total supply volumes.
Chainlink faces an unseen resistance formed during the last week’s uptrend push towards $7.5. The repeated candlesticks with wicks at the top confirm selling activity to have begun, while the large red candle formed on January 30 directs towards an even stronger profit booking possibility. Read Chainlink prediction to know how will the profit booking journey be for the token!
The sudden decline in the RSI indicator from overbought to the 50s level despite a limited downtrend from its recent peaks of $7.5 is a worrying sign that has begun to appear. While RSI has often bounced back from current levels, the MACD indicator forms a bearish crossover, first amidst the past three profit booking failures.
The technical developments carry a warning sign for investors entering this volatile price band. While the transaction volumes have remained the same throughout the duration since LINK breached the 100 EMA, the change in the directional trade could be indicating a rising profit booking sentiment.
Moreover, the significant resistance of 200 EMA is still trading at a premium from the current value. Breaching $8 is gradually becoming the need of the hour to capitalize on the bullish sentiment developing throughout January 2023. Chainlink had gained significantly before the January 30 fall, considering the marginal decline of the previous day.
The weekly candlestick pattern confirms LINK token has reached the peak of its declining parallel channel. Hitting the negative trendline may also impact the sentiment and decision-making for the LINK tokens. $9.5 would be the milestone of having overcome the selling zones on weekly charts for the short term.