#Link #crypto2023 #dyor #altcoins
Consider the coin Link(Chainlink)
Chainlink (LINK) is a decentralized oracle network that aims to connect smart contracts with real-world data.
What are oracles?
Oracles are designed to bridge the gap between blockchain-based smart contracts and the real world. Since a blockchain cannot access data outside its network, oracles are needed to function as data sources in smart contracts. In the case of Chainlink, the oracles are connected to the Ethereum network. Oracles provide external data (eg temperature, weather) that triggers the execution of smart contracts when specified conditions are met. Chainlink network participants are incentivized (through rewards) to provide smart contracts with access to external data, such as API information. If users want to access off-chain data, they can submit a contract request to the Chainlink network. These contracts will match the requesting contract with the corresponding oracles. Contracts include a reputation contract, an order matching contract, and an aggregation contract. The aggregation contract collects data from selected oracles to find the most accurate result.
To summarize, we can say that Chainlink performs a very important and necessary function, and in the future it will be very popular. This is confirmed by the “Whales”, who have only been increasing and accumulating their positions for almost a whole year, and recently they began to withdraw a huge amount of Link token from exchanges, which indirectly indicates the reluctance of the “Big Players” to sell their tokens at current prices, which in turn indicates bullish sentiment about this project.
The technical side of the issue.
Since the ATH, the token has fallen by 90%, but it is not these numbers that are striking, but the insane accumulation over the course of a whole year in a clear parallel channel. After finding the supposed “bottom” in the area of $5.5, the token successfully walks in the range of $5.5-9.5, within which its own powerful local supports (areas of interest of buyers) and local resistance (areas of interest of sellers) have formed, and we will consider them in more detail.
At the moment, the price is sandwiched between levels 6.4 and 7.5, level 7.5 is also the middle of the global accumulation channel and for a long time the coin cannot overcome this line, so the price rushed to the nearest support in the range of 7-6.4
On the Bitcoin chart, the price has reached its local support, the asset is in the oversold zone, but not extreme.
It is unlikely, but still possible, to break through this support and move to the main zone of buyers’ interest in the range of 5.5-6 (especially considering the tense macroeconomic situation and the market’s fear of a possible US technical default).
But, as I mentioned earlier, there is a significant outflow of coins from exchanges, therefore dumping the price excessively will not be so easy and, in principle, impractical, so let’s consider a more positive scenario. In the event of a second retest and successful penetration of the middle of the channel and the nearest global resistance in the range of $7.5-8 and consolidation in the zone or above it, we can expect a move to the last global resistance in the range of 9-9.5, after some consolidation.
Of course, without some powerful news on the project itself, an influx of large liquidity into the market or an overflow of liquidity from Bitcoin to alta, one cannot expect an exit from this channel, therefore the best medium-term strategy for this coin is trading within the channel and the announced levels . But I will still remain optimistic and will indicate the nearest levels for fixing spot and long positions in the event of an upward exit from the channel.
Potential levels for a set of spot and long positions:
- 5.5-6
- 6.4
- 6.75
- 7
Potential levels for fixing spot and long positions depending on tbx, starting from the bottom:
- 6.4-6.75
- 7
- 7.5
- 8
- 9
- 9.5
- 11.5
- 12.7
- 14
- 16
By tradition, this analysis is not financial advice or a call to action; always conduct your own analysis and research. Happy trading everyone and may the profit be with you!)
