Chainlink is a decentralized oracle service provider based on the Ethereum network. It provides the opportunity to develop blockchain solutions for traditional real-world businesses, and it helps to create tamper-proof smart contracts to offer different services for the business.
Chainlink aims to make smart contracts relevant to real-world businesses using blockchain data. It also helps to decentralize the Internet to create a link between the real world and blockchain contracts. That means Chainlink connects the business with blockchain technology and integrates with an API.
All these things are based on oracles, which run on decentralized infrastructure, and the core functions depend on two systems: On-chain and Off-chain. Off-chain has a component that helps to integrate non-blockchain applications into the system, and it also has the functionality to add external adaptors and subtask schemas.
On-chain infrastructure is mainly used for oracle selection and records.
Till now, it is only supported on the Ethereum network, but in the future, it will be updated to cross-chain transactions. The three components are:-
- Reputation Contract: Tracks on oracle metrics.
- Order Matching: Takes bids from individual nodes based on smart contracts.
- Aggregating Contract: Collects answers and provides the final result to the query.
Many experts believe that Chainlink has crossed the level of $7, which suggests bullishness for the long term, but it can be a bear’s trap because those investors who accumulate the coin at a higher level will be in a trap for the next few months. Please read our Chainlink prediction to find ideal future projections for LINK.
At the time of writing this post, LINK was trading around $7.44. It has been consolidating between a range of $7.86 and $5.86. Based on the price action, if LINK crosses the resistance level, it will go up to $13.
In the short term, it is bullish because RSI is at 56. MACD and Bollinger Bands suggest upward movement. However, we think it is not the ideal time for the investment because it may retreat from the level of $7.86. You should be interested only when Chainlink crosses the resistance level.
On the weekly chart, Chainlink has taken support at around $6. The last weekly candle suggests a bearish Doji, which shows indecisiveness in the market. LINK is still bearish on the long-term chart, but you may pay close attention to the price for the next few weeks as it may turn bullish. RSI is at 37, and MACD is bullish. Technical indicators do not reflect a clear upward or downward trend.