Chainlink Continues to Show Positive Momentum in Crypto Market

After closing the markets with a 3 per cent gain in yesterday’s trading session, Chainlink is down by less than a percentage point today. However, the drop looks likely to reverse as the session progresses, and there is a high possibility that we might close the session with Chainlink extending the bullish trend of the past two trading sessions. 

Fundamental analysis

Chainlink is a decentralized oracle network that connects smart contracts with external data sources, such as APIs and payment networks. The platform allows smart contracts on the Ethereum blockchain to securely access off-chain data and systems, enabling them to interact with the real world. The Chainlink network consists of nodes run by independent operators that provide data to smart contracts.

According to data shared by Lookonchain, a team that tracks “smart money” wallet transactions, a number of major holders of LINK, the core ERC-20 asset of Chainlink, have recently started a new phase of accumulation. A series of notable purchases by whales has accelerated in the last 14 days, with whales accumulating on both centralized and decentralized exchanges.

In addition, the recent Chainlink staking v0.1 on Ethereum’s mainnet has likely contributed to the interest of whales. The staking feature allows users to earn rewards by participating in a decentralized alerting system that flags the network when feeds are not meeting performance requirements. This helps to increase the economic security of the platform’s oracle services.

On-chain metrics also suggest that Chainlink is gaining traction. The total number of transactions and active addresses on the network have increased, indicating growing usage of the platform. Furthermore, the exchange reserve for LINK has decreased, which is a positive sign as it represents less selling pressure.

Overall, I believe that the recent activity among LINK whales and the launch of Chainlink Staking are likely contributing to the recent positive momentum for the platform. As the network continues to expand and improve its economic security, I believe that the demand for Chainlink’s oracle services will continue to grow.

Chainlink Price Forecast

As concluded on the above fundamental analysis, there is a high likelihood that we might continue to see growth of Chainlink in the next few trading session. Based on the recent price action of the crypto, it is also clear that the recent price retracement has ended, and we may be at the onset of another bullish move.

Therefore, I expect the Chainlink price to continue rising for the next few trading sessions. There is a high likelihood that we might see its value hitting the $9.5 resistance level before the end of the year. However, a drop below $6 will invalidate this analysis.

Chainlink Daily Chart