Bulls are Regaining Control; Will LINK Reach $20?

The decentralized oracle network has gained significant attention recently, attracting newcomers with its unique features. Moreover, its native coin, LINK (LINK/USDT) has given more than 47% returns to its investors in just 2 months

This article will provide insight into the various uses and applications of Chainlink in the real world, as well as the technical analysis of the LINK coin price.

Smart contracts require data to execute commands, but they cannot retrieve external data due to their isolated nature. As a result, developers encounter difficulties in creating smart contracts that can utilize external data. 

This problem may seem straightforward, but developers have a lot to lose as they cannot access information from asset prices, IoT sensors, enterprise systems, and many other real-world data sets. 

What is the need for Chainlink?

As a solution, smart contracts depend on oracles, which are software components that obtain data inputs from external sources. However, developers must ensure that oracles have security and reliability traits that are on par with the blockchain. 

If a centralized oracle is solely responsible for data inputs in a smart contract, it can gain centralized control over the contract. 

Therefore, decentralized oracles like Chainlink are essential for the crypto ecosystem. There is more to it that makes this popular decentralized Oracle platform unique. 

As previously mentioned, Chainlink is a decentralized oracle service that enhances interconnectivity among smart contracts. Smart contracts can easily access credible data feeds, payments, APIs, and a wide range of other resources through the decentralized Oracle service. 

The platform acts as an intermediary between off-chain and on-chain systems, allowing smart contracts to access off-chain resources and respond to real-world events while executing agreements without external proof.

The primary components of its ecosystem include the Chainlink cryptocurrency, LINK token, and the blockchain, which is the LINK network. 

Many may wonder what sets the LINK decentralized oracle network apart. The concept of a decentralized oracle resolves the most significant issue in creating smart contracts, which is centralized oracles. Understanding the architecture and workings of Chainlink can provide more insight into how the decentralized oracle benefits smart contracts.

Prediction of LINK Coin Price 

Since mid-October, the price of the LINK coin has increased by more than 148% due to a surge in the cryptocurrency market. The bulls have a resistance level of $16.41 to overcome, while the immediate support level is $12.9. The bulls have been attempting to gain support from this level, and a bullish crossover has occurred between the 50-day EMA, which is currently at $14.56, and the 150-day EMA, which is currently at $11.63. The price prediction for the current period is bullish given the bulls break past the first resistance. 

Conclusion

Chainlink bridges the gap between smart contracts and decentralization. Chainlink helps to provide interconnectivity among smart contracts. The current trend in the link coin is bullish as the 50-day EMA is supporting from behind. The current chainlink price prediction is bullish.

Technical Levels

• Support Levels: $12.9 and $8.32
• Resistance Levels: $16.4 and $19.1

Disclaimer

The views and opinions stated by the author, or any people named in this article, are for informational purposes only. They do not establish financial, investment, or other advice. Investing in or trading in stocks, cryptos or related indexes comes with a risk of financial loss.

Nancy J. Allen is a crypto enthusiast, with a major in macroeconomics and minor in business statistics. She believes that cryptocurrencies inspire people to be their own banks, and step aside from traditional monetary exchange systems. She is also intrigued by blockchain technology and its functioning. She frequently researches, and posts content on the top altcoins, their theoretical working principles and technical price predictions.