The recent boom in decentralised finance (DeFi) has led to an increased demand for oracle networks that enable the integration of blockchain tech with off-chain data sources.
Chainlink has become a major force in the DeFi space, becoming the largest shareholder in the decentralised oracle network niche.
This has seen it post week-long gains, and today’s modest rally represents growing market confidence in the blockchain protocol’s capability to see exponential growth. This has seen more investors rush to buy LINK as part of their portfolio.
This article highlights the key technical and fundamental performances of Chainlink to see if this is a good time to buy LINK.
LINK: Steadily Breaking Into Bullish Territories
Since November began, the crypto market has seen increased trading activity following BItcoin’s ascent to a new record value of $69,000. and several altcoins have also contributed their quota as the nascent industry looks to break into the $3 trillion mark.
Chainlink has been one of the top-performing altcoins and has surged 26.29% in the past month. At press time, LINK is trading at $34.40, up a modest 2.86% from the past 24 hours.
Weekly gains of 3.14% also depict a growing bullish sentiment surrounding the decentralised oracle network, and this could substantially triple in the coming days.
The market cap of $16 billion shows that LINK has increased 2.86% in the past day, while a 24-hour trading volume worth over $741 million shows that LINK has slightly shed 3.25% of its liquidity level in the last 24 hours.
With a market dominance of 0.56%, LINK is the 15th most valuable cryptocurrency by market cap.
However, this is not the best price action of the LINK token. At the beginning of the second quarter of the year, the ERC-20 token surged to an all-time high (ATH) of $52.70 on May 10. Today’s price peg sees it sit 34.6% from its record value.
The rapid transition to DeFi and other blockchain-based services will attract more interest in oracle networks like Chainlink. This makes now the ideal moment to buy LINK and rise with the market.
LINK Technical And Fundamental Analysis
Despite a slow start to the day, LINK is seeing a reasonable amount of bullish attention. The digital token is soaring above its 20-day moving average (MA) support price of $32.40 indicating a bullish undertone. The 200-day MA price of $26.97 points to a longer-term bullish sentiment surrounding the digital asset. This means that investors are likely to buy LINK, given its pivotal role in the evolving DeFi ecosystem.
The 14-day relative strength index (RSI) figure of 61.71 indicates that LINK is trading in the underbought region, however, it may soon broach the overbought mark with the indicator pointing upwards. Also, the moving average convergence and divergence (MACD) stand neutral as both trendlines collapse together.
Chainlink’s growing price action has been a twin combination of the positive outlook of the crypto market and its growing relevance. The data services provider has recently partnered with Associated Press (AP).
According to the official release, AP will store its critical data on the Chainlink network for developers to access data by running a node on the Chainlink blockchain.
Also, Germany-based crypto broker Bison has added support for the LINK token and according to a blog post, users will now be able to buy, sell, and hold LINK and UNI while accessing more digital asset offerings on the brokerage platform.