The main problem of decentralized blockchain technology is it cannot interact with real-world data. Chainlink aims to solve this problem. It uses a breakthrough platform for blockchain oracles which acts as a breeze to connect off-chain and on-chain data.
Smart contracts running on Ethereum do not have access to real-world data, but the Chainlink makes it possible to retrieve data from outside.
In short, it is a decentralized network of nodes launched on the Ethereum (ERC-20) blockchain. It helps to provide real-world data from third-party resources and adds it to the smart contracts through oracles.
Indeed, smart contracts play a vital role on this platform because it relies on automation systems to evaluate and execute data based on predetermined agreements. As long as the agreement is fulfilled, the smart contracts will execute automatically.
The best part is Chainlink runs on different blockchains simultaneously and enables external resources such as API integration. It also connects real-world payments and events with blockchain technology, and it also adds an extra layer of security to the blockchain system for sensitive information. In this way, it can connect cryptocurrencies with banking systems and enable smart contracts for traditional financial institutions.
At the time of writing, LINK was forming a Support Level of around $7.12. Before the correction in the crypto market, it was consolidating between a range of $18.3 and $12.8.
However, it has broken the range and formed new support at around $7.1. It is difficult to predict how long it will sustain. However, our LINK price prediction tries to give you close to accurate future projections.
On the daily chart, the MACD indicator is bullish. While RSI indicates neutral momentum, you can find an increase in volume with a lack of volatility. Daily candlesticks are forming around the middle band of the Bollinger Bands, and all of these suggest short-term bullishness.
However, on the weekly chart, it has broken the strong support level of $8.9. Eight consecutive red candles have been forming in the lower half of the Bollinger Bands, which suggests strong bearish momentum in the price action. MACD and RSI also reflect bearish momentum.
We think it is not the ideal time to buy the coin for the long term. However, you can start a short trade from the support level, but it will be risky. Wait for the right opportunity before investing in the LINK coin.
Source link: https://www.cryptonewsz.com/chainlink-may-end-correction-wait-for-an-uptrend/