LINKUSDChainlink is a real world company, but also a protocol with a native token that can increase (or decrease) in value as Chainlink's network effect grows. A better description of Chainlink's network of oracle nodes and how the protocol attempts to solve the challenge of bringing real world data to the blockchain can be found here: https://www.yahoo.com/now/chainlink-why-important-world-cryptocurrency-180220462.html
The chart published here shows
LINK since 2019, one thing I find interesting is that the bottom in LINK (Dec 2018) preceded the bottom in Bitcoin (Mar 2020). Chainlink broke out of a year-long consolidation in July 2020 (yellow circle #1) and after a +500% rally from $3 to $20, Chainlink consolidated for most of the rest of the year (Fall 2020), retesting below $10 before eventually breaking to new highs above $20 by Spring 2021. Momentum slowed as price neared the upper boundary of three year trend channel - resistance shown as dotted lines here. A small consolidation between January and April 2021 concluded with an upside breakout (not defined on the chart, but visible) and trapped buyers before giving back the previous six months of gains. In the following months, many LINKers were either holding at a loss, selling at a loss, or selling at breakeven.
Current:
LINK attempted a final breakdown in July 2021 (a year after it's 10x gain), but there were too many buyers and not enough sellers. Price rocketed off of the support shown as the lower boundary of the dotted trend channel here, rising from around $15 back up to $30, a number that has some clear technical significance. As support becomes resistance becomes support, I believe LINK is breaking higher once again here, with strong support below $20. 50% is a long way down, but upside channel resistance is as high as $120, making this a $10 risk : $90 reward setup, and that's one that I will take all day.I'm LONG
LINK Be safe,
j
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Disclaimer
The information and publications are not meant to be, and do not constitute, financial, investment, trading, or other types of advice or recommendations supplied or endorsed by TradingView. Read more in the Terms of Use.