Chainlink (LINK) has advanced more than 20% since the beginning of July, rising from a low of $5.9 to a high of $8.20. Many crypto enthusiasts ask about price estimates for Chainlink, so today we are looking into technical analysis of the coin.
The amount of LINK traded over the last several days saw an increase which meant that buying strength was recovering in the market. The current price of Chainlink (LINK) stands at $7.76, which is more than 70% off from its 2022 highs that were registered in January. Where is the price of Chainlink (LINK) going next, up or down, and what can we expect from August 2022?
Today, Crypto Lists Ltd will discuss DOT price estimates from a technical and fundamental analysis perspective. Please note that there are also many other factors to consider when entering a position, such as your time horizon, willingness to risk and how much margin you got if trading with leverage.
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- 1 The US central bank will likely have to raise its key rates substantially further
- 2 Technical analysis for Chainlink (LINK)
- 3 Main support & resistance levels for Chainlink (LINK)
- 4 What speaks for the rise in the Chainlink (LINK) price
- 5 What indicates further downfall for Chainlink (Link)
- 6 Chainlink (Link) price expectations from analysts and experts
The US central bank will likely have to raise its key rates substantially further
ChainLink is a decentralized oracle network that provides real-world data to smart contracts on the blockchain. Smart contracts seeking to replicate bonds or insurance agreements usually need access to APIs reporting on market prices, and Chainlink was created to address this issue by incentivizing data providers (called “oracles”) to act as a bridge between blockchain smart contracts and external data sources.
Chainlink is built on a flexible framework that can retrieve data from any API, and every oracle within the Chainlink network is incentivized to provide accurate data since a reputation score is assigned to each. It is also important to say when nodes follow the software’s rules and provide useful data; they are rewarded in Chainlink’s cryptocurrency, LINK.
The popularity of this project is growing, and it is used by many developers, researchers, and users. According to the latest news, COTI (CRYPTO: COTI) has announced that it will be leveraging Chainlink Keepers in order to completely automate payouts to liquidity providers. Yoni Neeman, Chief Innovation Officer at COTI, said:
“Chainlink Keepers allow us to provide a fully trustless solution for users. Whenever protection reaches its expiration time, users automatically receive a payout for any IL they incurred on their liquidity, straight to their wallet address in the form of USDC! Payout is done in a fully decentralized manner via Chainlink Keepers.”
Chainlink also recently reported that LINK had been listed on Robinhood (NASDAQ: HOOD), which brought a short-term bullish price movement for the token. Despite this, the risk of another decline for Chainlink (LINK) is not over, and according to Commerzbank economist Christoph Balz, the US central bank will likely have to raise its key rates substantially further to get inflation under control.
While the rate increases are intended to tame inflation and thus help the economy, investors are worried that an aggressive interest rate could tip the economy into recession. Risk-on assets tend to suffer in such conditions, and it is important to say that risky assets like stocks and cryptocurrencies have been considerably impacted by the US central bank’s tightening monetary policy.
After hitting recent highs above $18 in April 2022, Chainlink (LINK) has encountered losses of more than 50%. The price has now stabilized above $6 support, but a break below this level would indicate that LINK could probably test the support level at $5.
On the chart below, I marked the trendline, and as long the price of Chainlink (LINK) is below this trendline, we can’t talk about a trend reversal, and the price of LINK remains in the SELL-ZONE.
On this chart (the period from December 2021), I marked the main support and resistance levels that can help traders to understand where the price could move. The more often price tests a level of resistance or support without breaking it, the stronger the area of resistance or support is. When the price passes through the resistance, that resistance could potentially become support. Chainlink (LINK) remains in the “bearish phase, “but if the price advances above $10, it could be a sign of the trend reversal, and the next target could be located around $12. The important support level is $6, and if the price breaks this level, it would be a “SELL” signal, and we have the open way to $5. If the price drops below $5, which represents very strong support, the next target could be located around $4.
Chainlink (LINK) has advanced more than 20% since the beginning of July, rising from a low of $5.9 to a high of $8.20. The amount of LINK traded over the last several days saw an increase, and if the price advances above $10, the next target could be located at around $12
Traders should also consider that the price of Chainlink is correlated with Bitcoin, and if the price of Bitcoin jumps above $25 000, we can see LINK at $9 or even $10.
Chainlink (LINK) has stabilized now above $6 support, but a break below this level would indicate that LINK could probably test the important support level that stands at $5. The price of Chainlink is also correlated with the price of Bitcoin, and when the price of Bitcoin drops, that usually has a negative influence on the price of LINK.
With inflation at 41-year highs and more aggressive monetary tightening policies from global central banks on the horizon, expert expectations are that risk-on assets like stocks and cryptocurrencies may continue extending losses. According to Commerzbank economist Christoph Balz, the US central bank will likely have to raise its key rates substantially further to get inflation under control. While the rate increases are intended to tame inflation and thus help the economy, investors are worried that an aggressive interest rate could tip the economy into recession. The price of Chainlink is also in correlation with Bitcoin, and if the price of Bitcoin drops below $20000 support again, we can see new lows for LINK.