Chainlink Up By 13.42%. Time To Buy LINK Coin?

Chainlink (LINK) is a decentralised oracle network that allows blockchains to interact through connected smart contracts securely. The popular altcoin is one of the few cryptocurrencies that has posted significant growth recently. Is it wise to buy LINK at current prices? Let’s find out.

Chainlink: Fixing the Blockchain Oracle Problem

The network, built on Ethereum, facilitates data transfer from off-chain sources to on-chain smart contracts. Chainlink addresses the oracle problem by bridging the gap between off-chain sources and the blockchain ecosystem. The oracle challenge limits blockchain platforms in receiving or transferring data from the outside world.

The Oracle network connects protocols to real-world data, events, and payments methods. Chainlink was founded by Sergey Nazarov and Steve Ellis in 2017. Chainlink allows users to become node operators and earn revenue by running critical data infrastructure. The network uses a large collection of node operators to collectively power the Price Feed oracle network which secures billions in value.

LINK is the native token of the Chainlink blockchain. It serves two functions. LINK is used by smart contracts to pay Chainlink node operators for validations. The node operators also stake LINK to secure the network and get rewards.

Unlike other blockchains, Chainlink is secured by a proof-of-stake (PoS) consensus mechanism. PoS relies on the amount of staked tokens for selecting node validators. This reduces energy costs and transaction fees needed to verify data on the network.

Popular exchanges like Huobi, Brave New Coin and Alpha Vantage are a few of the data providers that currently work with the Chainlink blockchain.

LINK’s Price Hitting Highs

Currently trading at $34.83, LINK’s price has risen by about 13.42% in the last 24 hours. It has appreciated by at least 80% since its July 20 low of $13.90, making it one of the best recoveries since the May crash.

LINK had plunged from an all-time high (ATH) of $52.88 due to the market crash. The asset dropped to a low of $15.8 by the end of May, reflecting the wider market’s volatile state.

The asset surged again and reached $35.1 at the beginning of June but again saw its gains shaved off by the bears taking over the crypto market. This saw LINK trade at $16.95 on July 14th. The coin is ranked the 12th most valuable cryptocurrency with a market cap of $15.7 billion. Is it wise to buy LINK at current prices? We think so.

LINK Technical and Fundamental Analysis

LINK is soaring on the chart, with the indicators suggesting a bullish trend. The token’s Relative Strength Index (RSI) is at 69.25, showing that it is heading to the overbought zone. Investors who want to buy LINK might want to do so now.

The asset’s 200-day moving average (MA) stands at $34.556, while the 20-day MA is $34.791. This means that despite its bullish movement as it trades above its moving averages, the bears are on the verge of a crossover. However, the LINK token has bullish long-term potential. Forecast website Wallet Investor puts its one-year forecast at $53.269 and its five-year forecast at $132.062.

Similarly, the prediction site Digital Coin provides a bullish forecast of LINK. However, the analysts at Digital coin predict a bit higher price for LINK. The digital token is expected to trade at $58.83 next year and $121 in the next five years. In just three years LINK would trade at $85.28, this price potential reinforces why investors need to buy LINK now.

Chainlink’s Oracle network service has expanded to new networks in recent times. Layer-2 Ethereum scaling solution Optimism recently announced that Chainlink oracles are now running live on Optimistic Ethereum.

This integration, according to the project, will enable developers on Optimism to build decentralised finance (DeFi) apps using Chainlink’s low-cost Price Feeds with minimal changes. Chainlink’s Price Feeds will reportedly provide decentralised apps on Optimism with high-quality, tamper-proof price data feeds on-chain for various asset types, including cryptocurrencies.

Additionally, Solana has also integrated Chainlink’s Price Feeds. The blockchain network announced that the Price Feeds is now live on the Solana Devnet at sub-second updates. The integration is part of the collaboration between Solana Labs and Chainlink.

With this development, developers on Solana can now leverage Chainlink’s Price Feeds for decentralised, high-quality, and fast-updating price reference data. This would help their quest in building a wide variety of hybrid smart contract applications in DeFi.

Chainlink’s Verifiable Random Function (VRF) is also gaining attention. Non-fungible token network Bored Ape Yacht Club (BAYC) recently announced integrating with Chainlink’s VRF to distribute random NFTs in its platform’s airdrop.

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