Chainlink (LINK) has experienced a significant rally, surging by 24% in the past month to reach $7.5 on Wednesday. The token for smart contract price feeds, known as Oracle, hit a three-month high of $8.2 after finding support at $5.7 on September 11. Analysts predict that LINK will undergo a correction to find fresh liquidity before embarking on another upward trend above $10.
In recent news, Chainlink announced the release of Automation 2.0, an upgrade for smart contracts. This software update allows smart contracts to offload compute tasks at a lower cost without compromising security. It also enables the connection of decentralized applications (dApps) using log triggers, similar to the pub/sub messaging bus used in Web2 microservices.
Additionally, Chainlink launched Data Streams Mainnet, a low-latency solution that aims to provide decentralized finance (DeFi) trading experiences similar to centralized exchanges (CEX) but built on decentralized infrastructure. The Data Streams feature has been made available for early access on Arbitrum, with DeFi protocol GMX being one of the first projects to utilize it.
The Chainlink price currently faces a crucial test at the $7.5 support level, which aligns with an ascending trendline and is slightly above the 50-day Exponential Moving Average (EMA). The Moving Average Convergence Divergence (MACD) indicator is close to confirming a buy signal, suggesting that the path of least resistance could soon shift upwards.
Despite being in a long-standing range channel, many traders maintain a bullish outlook for Chainlink in the long term. One crypto trader suggests giving LINK between 6 and 12 months to witness its next significant move.
In case of further losses below the ascending trendline and the 100-day EMA, investors can look towards the $7 support level as the next potential area of interest.
John, a renowned crypto analyst and journalist, provides expert insights into various aspects of the digital asset market. He covers topics such as price trends, on-chain data analytics, NFTs, DeFi, CeFi, and the metaverse. Please conduct thorough market research before making any cryptocurrency investments as the presented content may include the author’s personal opinion and is subject to market conditions. The author and publication do not hold any responsibility for any financial losses incurred.
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