Chainlink (LINK) Achieves New Record High - What's Next?
New Change FX (NCFX), a fintech company specializing in delivering price transparency to the fragmented FX markets, announced that it will provide traditional financial market data on the blockchain through Chainlink's data oracle service yesterday.
NCFX provides live, independent, regulated benchmarks and ground-breaking analytics about foreign exchange, precious metals, and crypto-assets market data, covering a total of about 2,300 currency pairs. Smart contract developers are able to utilize Chainlink nodes to access these data sets.
With the rapid growth in value of the decentralized finance (DeFi) market, NFCX, as the market's leading data provider, chose the Chainlink network without changing its own Application Programming Interface (API) infrastructure after studying various oracle solutions, thus achieving a win-win situation for the traditional market data in decentralized finance (DeFi) applications.
Since different blockchains operate differently and do not have access to a centralized ecosystem, even another data block added to the chain can become a difficult task. To address this pain point, Chainlink, as the most widely used oracle network in the current blockchain industry, provides data oracles, which can be accessed by any decentralized network.
Chainlink (LINK) Price Analysis
Source: LINK/USD Daily via TradingView
Chainlink's long green candlestick made its price break through the resistance of its previous high of $36.89 yesterday. And Chainlink (LINK) firmly stands on top of this, setting a new high of $42.19 today.
At the time of writing, the Chainlink bulls are actively defending the $40 support level and LINK/USD is trading at $40.53.
So far, LINK's rate of return is very impressive, rising by more than 200% since the beginning of 2021. Although prices fell at the end of March, LINK has regained its upward momentum. Chaink's price has been particularly bullish since it set a record-high of $42, with the altcoin breaking through the previous ascending channel, as indicated in the chart above.
The transaction price of LINK/USD is much higher than the Exponential Moving Average ribbon. Both the upward sloping moving average and the bullish MACD indicate that the bulls are currently dominating the market.
The Relative Strength Index reversed its direction after touching the overbought zone, which suggests that LINK will stabilize and consolidate before resuming its upward momentum. After a slight pullback, the upward trend of LINK may open a faster upward channel, when Chainlink hits a new high - this will indicate that the altcoin will not encounter strong selling pressure on its way up. It is very likely to break through $45 in the short term.
Image source: Shutterstock
Disclaimer: The views and opinions expressed in this article are solely the author’s and do not necessarily reflect the views of Blockchain.News. No information in this article should be interpreted as investment advice. Blockchain.News encourages all users to do their own research before investing in cryptocurrencies.