With a price increase of 8% over the past seven days, Chainlink (LINK) is currently one of the best performers in the crypto market, followed by Litecoin (LTC) and BNB. Remarkably, LINK’s trading volume has dropped by 20% to just $389 million in the past 24 hours.
As of press time Chainlink was trading at $6.66, showing a modest bounce from the bottom of the channel that LINK has been in since early May. The lower boundary of the channel lies at $5.35, while the major resistance for LINK price currently lies at $9.52.
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 on the 1-day chart, LINK is in the neutral zone.
However, the surge of the last three days should be taken with a grain of salt. On-chain data from Sentiment shows a significant increase in exchange flows following the recent price increase. Nearly 15 million links were transferred to known crypto exchange wallets in the last 24 hours.
On the 1-week chart LINK/BTC, the coin is at a crucial moment: will LINK be able to break above key trendline resistance or will it suffer its fourth rejection in the last 13 months. As one analyst put it, this could be a “make it or break it” kind of moment for Chainlink.
Fundamental Remnant Strong for Chainlink (LINK)
The fundamentals seem stronger than ever as Chainlink faces a critical moment. In about two weeks, Chainlink will launch its staking feature. Starting 12 noon on 06 December, LINK owners and node operators will be able to earn rewards for enhancing the security of decentralized oracle services.
As a result of the announcement, the project has seen a significant increase in social engagement. However, Chainlink Economics 2.0 will not only allow staking, but also improve access to Chainlink services and technical performance.
1/ Capabilities #chain link Oracle Network continues 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
Also, Chainlink is Expansion of Its platform to include 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 in the Web3 space expect to interact with each other, sending and receiving tokens, instructions, messages, and more.
More recently, crypto exchange Huobi announced that it is using Chainlink’s Proof of Reserve to help provide increased transparency around its wrapped HBTC token.
On November 18, the Binance Chain team revealed 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 over 161 million data points distributed, over 230 dApp integrations, and over $780 billion in value under management.