- Chainlink price broke out of a symmetrical triangle pattern and rose 15%.
- Investors can expect LINK to retrace to $24.90 before rallying 24% to retest $30.85.
- Newer projects continue to leverage VRF, indicating that the oracle adoption continues to progress.
Chainlink price broke out of its symmetrical triangle consolidation on October 1 and rose explosively. However, the momentum reduced around a crucial resistance barrier, leading to a pullback. LINK might need to bounce off a stable support floor to kick-start a new uptrend.
Chainlink VRF adoption finds new use
XYO Network revealed the integration of Chainlink’s Variable Random Function (VRF) in a recent announcement. The project will use the VRF and random number generator to provide a location-based giveaway smart contract to select random winners fairly and securely.
The XYO Network will use COIN, the project’s frontend, for these “giveaways by allowing its users to participate based on visits to selected special locations.”
The announcement adds,
To choose the recipient fairly from this list of entrants, the XYO Network needed a verifiably tamper-proof source of randomness. After reviewing various mechanisms, we selected Chainlink VRF, the blockchain industry’s most time-tested and widely adopted solution for secure and verifiable RNG.
Additionally, Frenchie Network has also integrated Chainlink VRF for giveaways and airdrops. To prove a fair distribution, zero corruption from the developer team, the project will leverage VRFs as part of their tokenomics.
LINK price prepares for the next leg-up
Chainlink price formed a symmetrical triangle pattern from September 21 to October 1. However, the sudden surge in buying pressure on October 1 pushed LINK to slice through the triangle’s upper trend line at $24.41 and rallied 15%.
However, the bulls lacked momentum, leading to a retracement. So far, the oracle token has dropped 6% from its local top at $28.16. Investors can expect the Chainlink price to continue its descent to the stable support floor at $24.90 or the 50% Fibonacci retracement level.
If the buyers decide to come back, Chainlink’s price will bounce off this barrier and start a new 24% uptrend to $30.79. However, to reach its target, LINK needs to shatter $28.39.
In some cases, Chainlink price might extend to the range high at $36.33, constituting a 46% ascent from the trading range’s midpoint.
LINK/USDT 1-day chart
On the other hand, if Chainlink price fails to hold above $24.90, it will invalidate the bullish thesis. Additionally, it will also indicate that the seller activity has increased. Regardless, such a development could knock Chainlink price down to retest the 62% Fibonacci retracement level at $22.15.
Associated Press Will Utilize Chainlink To Record Real-World Data on Various Blockchains
The Associated Press (AP) is tapping decentralized oracle network Chainlink (LINK) to make its data accessible on leading blockchains.
Chainlink serves as a bridge that can bring off-chain information to blockchains and smart contracts.
The news agency says it’s launching a Chainlink node that will enable it to supply and directly sell datasets on US political elections, economic data, sports results, and business financials that can be used by applications running on blockchains.
The AP’s announcement comes amid the increasing popularity of smart contracts, which are designed to be tamperproof programs that automatically execute outcomes when certain conditions are met.
According to the AP, Chainlink can play a role in automating blockchain processes such as alerting markets about calls on political races, initiating on-chain trades when companies release their financial records, and updating the appearance of non-fungible tokens (NFT) based on real-world events.
In 2020, the AP also teamed up with decentralized knowledge platform Everipedia to publish US election calls on the Ethereum blockchain.
AP’s director of blockchain and data licensing Dwayne Desaulniers says,
“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.”
Chainlink’s native token is currently the 16th largest crypto asset by market cap. At time of writing, LINK is trading at $29.28, according to CoinGecko.
Chainlink Whales Now Hold Almost 25% of Supply: Here’s Why It Might Be Concerning
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.
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.
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.
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.
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.
Associated Press (AP) Will Run a Chainlink Node To Guarantee The Reliabitliy Of Its Data
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.
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.
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.
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
— ChainLinkGod.eth 2.0 (@ChainLinkGod) October 20, 2021
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.