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- Chainlink has seen a decrease in the inflow volume to the exchange with an increase in social media’s positive sentiment.
- LINK is currently trading at the value of $26.64 with a gain of 7.9% in a 24 hour time frame. Meanwhile, the Link/BTC pair is currently at the value of 0.0005595BTC with a gain of 2.4%
What Exactly Is Chain Link Contributing in the Blockchain Industry?
Chainlink is a decentralized oracle network built on the ethereum platform. In simple words, it connects traditional contracts and data to Smart contracts. Before jumping onto the Chainlink working, let’s ask a question first.
How do we know that the data reaching in the Blockchain is airtight and accurate? How does the data of traditional contracts, share price, API and transactions reach the blockchain network?
Due to the consensus mechanism, blockchain networks cannot access the outside Network.
This is where Oracle comes into play. They are basically nodes in the Network which feeds the data in the Blockchain. It is perfect with one basic fault, “centralization“.
If you are a billionaire and want to execute a high-level transaction, you cannot trust the oracle network for this due to a single point of failure and centralization.
Chainlink solves this problem by providing a decentralized oracle network. LINK is not a data provider but a decentralized network of the oracle. It can also tap into other data with its nodes and be a part of the wider Network.
Projects On Chainlink Ecosystem
Chainlink has a wide variety of projects on its platform like Agroic, KyberNetwork etc. Link has also integrated outside the ethereum realm and connected with Polkadot and Tezos. According to the decrypt, more than 90 Defi Projects and 23 data providers are working on the Chainlink .The new update on Off-chain Reporting Promises to deliver ten times more data than the traditional way. Chainlink Cofounder, Sergey Nazarov, has said that they will work hard to increase efficiency by decreasing the computational power on the Network.
Major Holders And Inflow In Exchanges
The holding pattern of Chainlink Represents the trust of investors in the coin. The lower activity address in the holding pattern is concentrated more than the high activity address. It showcases that the investors and retail traders have faith in the project. There are nine major whales in the chainlink within the range of 2.86 to 35% of the total supply. The concentration of the holdings of whales had changed very slightly from last year.
The Inflow volume indicator tells about the number of crypto assets flowing into the exchanges. It showcases whether people are looking for a sell-off or a buy. Three months of data of the Chainlink highlights that there is no sharp peak or increase in the slope. It is a good sign as no bears are circling around Chain Link, and bulls are accumulating.
Chainlink(LINK) Technical Analysis
Chainlink is currently trailing at the level of $26.64 with an intraday gain of 7.96%. LINK has given whooping returns of 1945% from the start of 2020. It has been one of the highest gainers in a year time frame.
Chainlink major resistance is placed near the supply zone of $31.67.The support for the coin is placed at the value of $20. LINK coin is trading above 50 and 100 Moving average. The 50-MA (blue line) is at the value of $25.3, making it temporary support.
RSI is at the value of 48.77, showcasing its presence in the normal trajectory . It has formed a positive slope which highlights that the price can see an upwards movement in the upcoming days.
Will Chainlink Be The New Market Leader?
The short answer is, “Yes, it can be”.The functionality and scalability of Chainlink has been at par with its contemporaries. The project also has a great team which is working around the clock for the betterment of their project. The overall technical and fundamental analysis tells that it is a great project and can give a great to the investors in upcoming days. Investors should do thorough diligence before investing.
Adarsh Singh is a true connoisseur of Defi and Blockchain technologies, who left his job at a “Big 4” multinational finance firm to pursue crypto and NFT trading full-time. He has a strong background in finance, with MBA from a prestigious B-school. He delves deep into these innovative fields, unraveling their intricacies. Uncovering hidden gems, be it coins, tokens or NFTs, is his expertise. NFTs drive deep interest for him, and his creative analysis of NFTs opens up engaging narratives. He strives to bring decentralized digital assets accessible to the masses.
