Is Chainlink expecting a strong breakout upswing?

Chainlink (LINK) cryptocurrency prices have struggled to find stability following the May 19 meltdown and have remained below the fundamental demand threshold since then. However, LINK’s fortunes have flipped around, as recent patterns indicate an increase in pricing.

Oracle’s market-leading solution Chainlink is cementing its position as a key player in the cryptocurrency sector after surpassing the $75 billion milestone in Total Value Secured (TVS) of assets. 

“Crossing $75Bn in total value secured makes the Chainlink network one of the most value securing forms of decentralized consensus on the planet.” said Sergey Nazarov, Co-founder of Chainlink. “Chainlink networks are securing the most valuable smart contracts across multiple chains. Without trusted price data to trigger smart contracts, it is impossible to build DeFi applications, and we do not think it is a coincidence that the rate at which Chainlink has been able to bring new market data onto blockchains has been the rate at which developers have been able to build exciting new DeFi apps.”

According to DefiLlama statistics, Chainlink safeguards around 30% of all assets locked inside the ever-expanding DeFi ecosystem across the crypto sector, totaling $256 billion.

The move caused the price of LINK to rise and break out from a trading range it had appeared to be locked in. In the last year, LINK has grown by more than 140 percent. However, it remains in the deficit zone as compared to the prior six months.

Resistance around $40?

Chainlink is now trading at around $34 and has a market valuation of $15.83 billion. Chainlink’s pricing has increased by 30% in the last three months. Chainlink appears to be on a U-Shaped recovery and may soon set a new high. The rapid rise in the price of the LINK currency may be faced with resistance around $40.

If the LINK price climbs by 15 to 20% from its current level, a substantial bullish trend may be noticed. The bullish assumption will be invalidated if the LINK price fails to hold above the demand zone, which ranges from $35 to $38. In this event, Chainlink may decline to retest the $25 support level, from which it may resume the uptrend.

Chainlink is the standard oracle network for hybrid smart contracts. Developers may use Chainlink Decentralized Oracle Networks to improve the capabilities of smart contracts on any blockchain by accessing the greatest collection of high-quality data sources and safe off-chain calculations. Chainlink secures billions of dollars in value for smart contracts across decentralized finance (DeFi), insurance, gaming, and other important businesses, and is managed by a worldwide, decentralized community.


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Image: Gerd Altmann

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