Key Insights:
- The LINK rose in price to a new record high of $52 on January 23.
- LINK reached an all-time high of $35.58 on February 14, 2021, but it has since reversed under the bearish influence of the general crypto market.
- The cryptocurrency is up by 3% over the last day, and the RSI on the daily chart has gravitated toward the neutral zone once more.
With a market cap of $3.5 billion, Chainlink is the 21st largest cryptocurrency by market cap and currently trades at around $7.
Launched in mid-2017 by Sergey Nazarov and Steve Ellis, who previously worked together with Ari Juels, Chainlink is one of the most well-known cryptocurrencies in the market.
While the cryptocurrency isn’t as well-known as Bitcoin and Ethereum, it has nonetheless managed to carve out a niche in the market.
What Is Chainlink?
As its name implies, Chainlink is a middleware of sorts. It is a technology platform that enables non-blockchain businesses to connect safely with blockchain platforms. The chainlink protocol links blockchain-based smart contracts with external data, such as stock prices, verifiable random functions, and even baseball match results.
LINK, the native cryptocurrency of the Chainlink protocol, is used to pay the network’s operators and as collateral for its smart contracts.
Chainlink, at the bottom, is a blockchain abstraction layer or a decentralized oracle network. Chainlink supports what it refers to as hybrid smart contracts by using blockchain technology to permit computations both on and off-chain safely.
Any significant blockchain network, including Ethereum and Solana, is accessible to businesses via Chainlink.
Although traditional oracles like ChainLink are centralized, it uses its hybrid smart contracts to decentralize the transfer of data onto and off blockchains.
Chainlink network administrators that retrieve data from off-chain feeds are rewarded with LINK when they organize this data into usable formats and perform off-chain computations.
Historic Price Sentiments On Chainlink
Due to the boom in the popularity of blockchain technology and the update of the Ethereum blockchain, smart contract technology saw an increase in popularity and demand in 2021. As a result, the LINK rose in price to a new record high of $52 on January 23.
The cryptocurrency’s price continued to climb from this point, and a little while later, it was trading at all-time highs beyond the $30 mark.
LINK reached an all-time high of $35.58 on February 14, 2021, but it has since reversed under the bearish influence of the general crypto market.
After a brief downturn, the coin soared to yet another record high and traded at $52.43 on May 10, 2021, eventually achieving a record high.
The cryptocurrency could not maintain this position and inevitably collapsed to half its original price.
The current price of ChainLink is just over 7 USD at the time of writing.
Rising interest and significant Defi advances are linked to the increase in the price of cryptocurrencies like LINK.
Similarly, speculative activity has a significant impact on LINK’s prices. And so far, Defi migration for centralized financial systems has sparked a lot of speculative interest in blockchain projects like Chainlink, and the cryptocurrency appears to be doing well in price compared to other altcoins.
Chainlink Price Analysis
Given that the green candlestick has once again shown on the price chart, data from CoinMarketCap confirms that the cryptocurrency is bullish today.
Given that the price of Chainlink rose to the $7.17 zone, the green candlestick on the daily chart indicated a price recovery but market remained largely volatile.
The cryptocurrency is up by 3% over the last day, and the RSI on the daily chart has gravitated toward the neutral zone once more.
This indicates a massive price recovery on LINK and a real promise of a price correction to the upside.
LINK is currently testing the $7.5 zone and appears bullish enough on several indicators. However, the cryptocurrency’s upper Bollinger band is at the $8.86 zone, while its lower band sits at the $6.2 zone (above the previously tested support).
The cryptocurrency volatility is increasing on the side of its red candles, indicating that the selling pressure may still need to diminish fully.
Overall, the cryptocurrency appears bullish from a short-term perspective and may reverse to the bottom, depending on what the market does next.
Price Prediction On LINK for 2022
Chainlink is expected to climb further upward for the rest of 2022 and retest the $9.536 zone (green line below) before the end of the year.
This leaves the minimum price of LINK for the rest of the year as a retest of the $5.7 zone. While the maximum price of the cryptocurrency is the $9.5 zone or higher.
Price Prediction For LINKÂ In 2023
Chainlink is estimated to hit an average price of $9.5 for 2023. The projected minimum and maximum coin prices are $5.7 and $18.4.
LINK, as a cryptocurrency, has a solid potential to rise in value due to its recent partnerships and new advancements.
Disclaimer: Voice of crypto aims to deliver accurate and up-to-date information, but it will not be responsible for any missing facts or inaccurate information. Cryptocurrencies are highly volatile financial assets, so research and make your own financial decisions.
