- Chainlink (LINK), Nest, and Band are among the highest performing crypto assets of the year.
- Chainlink, the most popular oracle protocol in the ecosystem, has experienced a multifold year-to-date appreciation.
- This makes it the best performing crypto asset in the market.
While Bitcoin remains the dominant force in cryptocurrency, a new offering called Defi is gaining steam. There was a time when bitcoin was the only leading force in the crypto market, however, the scenario has changed with the arrival of new emerging technologies. As the year 2017 was known for the ICO boom, some say that 2020 is the year of Defi. It is observed that oracles are playing a leading role in the Defi boom. Per Messari’s report, Oracle tokens such as Chainlink (LINK), Nest, and Band are among the highest performing crypto assets of the year.
Chainlink, the most popular oracle protocol in the ecosystem, has experienced a multifold year-to-date appreciation. This makes it the best performing crypto asset in the market. Chainlink (LINK) had a great run this year with LINK not just entering the top five tokens in terms of market capitalisation but also sustaining its position and enjoying a surge of attention in the community.
Link Price Action
Chainlink’s token surged more than +109.1% from $7.45 to $19.88 in the month of August data shows. The surge saw chainlink’s (LINK) market capitalization shooting to $5.69 billion which makes it the fifth most capitalized token, just ahead of Bitcoin cash (BCH). At the time of writing, Chainlink witnessed a loss of -4.81% in the last 24 hours. The token price’s meteoric rise is a big win and an endorsement for the Chainlink project, which has had to contend with averments that the project is overhyped.
Chainlink started the year with positive momentum with minor gains. The first quarter of 2020 saw notable price gains however the COVID-19 crash wiped out recent market gains. Although crypto-asset recorded a strong comeback, April and May have largely seen Chainlink trading sideways. Chainlink started a strong rally from mid-July and continued trading with upsurge breaking it’sits All-time high. July and August have been good, notably in terms of its price gains. The cryptocurrency went from being valued at less than $4.37 in July to being overvalued at $20.
Chainlink Price Analysis
Chainlink (link) is retracing after such a big move. What goes up must come down and that’s what link is doing now.
The Moving Average Convergence Divergence (MACD) on a weekly time frametimeframe is slowly showing that bulls are losing momentum.
Link is currently trading within a downward channel. I have set a few possible scenarios. On the 4h timeframe, 200 ema could provide support and bulls could finally breakout from this channel or else it will retrace all the way to golden pocket 0.618 which would be ideal as ema 200 would provide support on a daily timeframe.
The link will be in a downward trend for a few weeks but once it finishes this retrace it will be heading to $31.70 this will be a start of a 3rd wave. Link looks very bright and this coin has always been supported with good volume on major exchanges.
Based on Fibonacci levels link could retrace all the way to $8.58 or breakout from the first green box which is $13.05.