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Chainlink Must Slice Through Resistance Barrier

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  • Chainlink’s price is up more than 20% over the past 24 hours.
  • Despite the significant gains incurred by the coin, LINK must slice through the $24 resistance to advance further.
  • Failing to do so may generate panic among investors, leading to a steep correction towards $17.

While Bitcoin and Ethereum seem at risk of a painful correction, Chainlink (LINK) has been able to rebound over the past 24 hours. It now faces stiff resistance that will determine where prices go next.

Chainlink’s Uptrend Depends on Resistance

Chainlink’s 100 four-hour moving average kept the coin’s uptrend intact over the past two weeks. Every time that LINK has retraced towards this indicator since Jan. 11, a significant rejection occurs, pushing prices towards higher highs.

More recently, the cryptocurrency fell by 21.50% after reaching a new all-time high of nearly $26. As prices sliced through the 50 four-hour moving average, the 100 four-hour moving average acted as stiff support, allowing Chainlink to rebound.

By bouncing off this crucial hurdle, LINK regained lost ground and rose towards the $24 resistance barrier.

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Chainlink US dollar price chart
LINK/USD on TradingView

On the way up, the parabolic stop and reverse (“SAR”) moved below Chainlink’s price, indicating that the trend’s direction had changed from bearish to bullish once again.

Historically, the stop and reversal system has been highly effective in determining the course of LINK. The last two times that the parabolic SAR flipped within the 4-hour chart, LINK’s price surged by 25.50% and 25.70%, respectively. Therefore, the recent flip over suggests that Chainlink is primed for further gains.

The moving average convergence divergence, or MACD, adds merit to the optimistic outlook. MACD, which follows the path of a trend and calculates its momentum, also turned bullish within the same time frame. As the 12 four-hour exponential moving average crossed above the 26 four-hour exponential moving average, the odds for higher highs increased significantly.

Chainlink US dollar price chart
LINK/USD on TradingView

Still, Chainlink faces a significant resistance barrier ahead that it must overcome before it can advance further.

Based on IntoTheBlock’s In/Out of the Money Around Price (IOMAP) model, nearly 3,400 addresses had previously purchased roughly 1.6 million LINK at an average price of $24.

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This supply barrier may have the ability to absorb some of the buying pressure seen recently. Holders with investments that are underwater might try to break even on their positions, slowing down the uptrend. But if Chainlink can slice through this level, it would likely climb toward a new all-time high of $28.

In/Out of the Money Around Price by IntoTheBlock
In/Out of the Money Around Price by IntoTheBlock

IOMAP cohorts reveal that the 100 four-hour moving average remains a critical area of support. Approximately 7,200 addresses are holding nearly 14 million LINK between $21.70 and $22.40.

Only a 4-hour candlestick close below this demand zone can jeopardize the bullish outlook. Under such circumstances, Chainlink will drop towards the 200-four-hour moving average at $16.50.

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Chainlink Whales Now Hold Almost 25% of Supply: Here’s Why It Might Be Concerning

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Chainlink-whale

The number of Chainlink whales is on the rise in accordance with the price

Chainlink’s 14% run on the market did not end with price action only. Following the price increase, the number of whale-tier wallets also increased and reached a four-year high, according to Santiment. While the supply is tied more to whale-tier addresses, in the correction period, retail traders and investors may face significant losses due to increased potential selling pressure.

Unpleasant correlation

According to the chart provided, we can clearly see a negative correlation between the increasing number of whales and the negative price action that took place from May to July and September.

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Santiment Data
Source: Santiment

Previously, Chainlink’s prices stayed at the $52 peak with whale-tier addresses staying at 23.9%. After the sell-off on the cryptocurrency market, LINK lost close to 70% of its value with whale-tier addresses dropping 8% of their total holdings.

Concerning history

With the progressive increase in the number of whales on the market, in periods of correction, the market faces increased selling pressure incoming from the aforementioned wallets. The same might be present on the market whenever a more significant correction hits the market.

Link Daily Chart
Source: TradingView.com

According to data from various exchanges, Chainlink is becoming a “victim” of large-volume sell-offs, which lead to a 50% correction inside of one daily candle. Such a trend in the number of whale-tier addresses may raise concerns among investors.

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Associated Press (AP) Will Run a Chainlink Node To Guarantee The Reliabitliy Of Its Data

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chainlink-Community-members.

The Associated Press (AP) is running a Chainlink node, providing smart contract developers with on demand verifiable data from a reputable source.

The challenge of getting a reliable source of data has been a perennial problem in the journalism business. Ever since the first information broadcast media was born, the world has had to rely on the integrity of those who provide the data. But that could change now that Chainlink is harnessing the power of decentralization, and the Associated Press (AP), one of the world’s largest news agencies, is beginning to move in that direction.

AP is running a Chainlink node and will begin uploading a significant set of data, leveraging Chainlink’s technology to guarantee the reliability of its information.

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Chainlink and AP News: A Partnership That Makes Sense

According to information shared by AP in a press release, the agency will share data related to U.S. race calls, economic facts, sports game outcomes, and business financials. The data will be cryptographically signed to verify its authenticity.

This is not the first time AP has used blockchain technology to ensure the integrity of its data with the world. Already last year, AP collaborated with Everipedia to upload the U.S. presidential election results on Ethereum’s blockchain.

Also, AP issued an NFT in early 2021 and is doing multiple experiments on the application of decentralized technologies in the art scene.

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Dwayne Desaulniers, AP director of blockchain and data licensing, said in the Press Release that the technology developed by Chainlink was ideal for AP’s vision of broadcasting reliable data across the world.

“Chainlink technology is the ideal way to provide smart contract developers anywhere in the world with direct, on-demand access to AP’s trusted economic, sports, and race call data. Working with Chainlink allows this information to be compatible with any blockchain. The open-source software is reliable, secure, and widely used across leading blockchain networks.”

William Herkelrath, managing director at Chainlink Labs, also applauded the decision, saying it made sense for AP to launch a Chainlink oracle node, considering its level of influence and the amount of information it provides to the world constantly.

Why Does It Matter?

AP is a news agency that has been in continuous operation since 1846. It is a reliable source of information worldwide with prestige and reach comparable to other agencies of the likes of Reuters, BBC, or EFE.

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Chainlink is a global provider of decentralized oracles. Chainlink’s vision is to ensure that information circulating outside the blockchain can be transmitted on-chain via smart contracts, rewarding the veracity of the nodes and sources similar to how the Bitcoin network rewards good miners. Any information can circulate via Chainlink, from price feeds to the results of a soccer game.

My god how the years fly by, from 28 ecosystem participants to now over 870+ integrations (31x growth) with over 90% oracle market share 32 months later

The price of $LINK was $0.44, some perceptive is always good, much more room for growth from here https://t.co/kkGtadGbJ8

— ChainLinkGod.eth 2.0 (@ChainLinkGod) October 20, 2021

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With AP running a Chainlink node, the information it uploads and digitally signs is verifiable by any other participant in the network and can be used to make decisions almost instantly. For example, a betting website could use AP data to guarantee the results of games on which its customers bet, or a political analyst could change election strategies depending on the results of a particular poll.

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Chainlink [LINK] gets fresh boost from Associated Press; here’s how

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Chainlink announced the launch of a node on its network by Associated Press for delivering real-world data to smart contracts. The famous news outlet will provide high-quality economic data, sports outcomes, and business financials to blockchain projects that use Chainlink.

It’s a very big announcement for Chainlink because of the importance of data that AP can provide to the customers and can be considered as one of the most crucial bridges between the two worlds.

Connecting the Worlds More

Accessing data from off-chain networks is always attractive. When blockchains can interact with other networks in the form of sending and receiving data and processing it, they can claim to provide real-world solutions.

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This approach is among the top for connecting the traditional networks to the innovative world of smart contracts and blockchains. Chainlink is one of the best solutions for this connection with the largest decentralized network of oracles.

Many big blockchains in the industry use Chainlink for accessing off-chain data. It’s the reason that a famous news outlet like Associated Press decided to work with this network for providing its data to blockchains.

According to the latest announcement, AP will make its datasets available to blockchains via Chainlin oracles. The datasets include economic, sports, and race calls. The data will be provided and sold to blockchains that need to interact and process for further use-cases.

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The off-chain data can be used for various goals in blockchains. For example, smart contracts can be triggered when something happens in real-world data like election race calls.

Another example is when a trade is triggered on a smart contract when a business releases its quarterly report.

Chainlink execs believe that AP can help many blockchains by running a node and providing data. William Herkelrath, managing director at Chainlink Labs, said:

“AP has established itself as one of the most trusted independent news organizations in the world for real-time news in all formats. Given its large and continually growing repository of facts and data, combined with Chainlink’s proven oracle infrastructure for providing reliable data feeds across leading blockchain networks, it makes sense for the AP to launch a Chainlink oracle node and support innovation within emerging smart contract industries.”

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The latest announcement from AP is a step they have started for some time. The famous news outlet is among the most active ones in embracing blockchain technology and moving toward its world.

Some of the previous works are collaborating with Everipedia to publish U.S. race calls on Ethereum and issuing the first media NFT in early 2021.

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