Bearish clouds diminish as Chainlink price steps into a 32% northbound move
|- Chainlink price validates a bullish breakout above a crucial falling trend line.
- Chainlink introduces a low-latency oracle solution for the DeFi derivatives market.
- Holding above the 100-day SMA support is necessary to continue the uptrend to $9.46.
Chainlink price is back in the green after confirming support at $6.50. The price feed oracle token wiped out most gains accrued in September amid an unstoppable correction in October. With the price trading above a three-month-long trend line, LINK could quickly close the gap to $9.46.
Chainlink launches an oracle solution for the DeFi derivatives market
Chainlink has tapped into the growing DeFi (decentralized finance) market with its new “ultra-low latency pull-based price oracles—to enable and secure this immense on-chain market.” It anticipates the DeFi derivatives sector to continue growing in the future, and this development will revolutionize value creation among dApps (decentralized applications).
“We anticipate that a testable version of this new pull-based Chainlink oracle solution will be ready by the end of the year,” a related blog post said in part.
Chainlink has, over the years, established itself as the go-to platform for oracle-based price feeds. The protocol’s solutions are used across the crypto market, especially by smart contracts platforms.
This early entrance into the DeFi derivatives market is bound to give Chainlink an edge over its competitors while creating value for the network’s native token, LINK.
Chainlink price is on the move
Chainlink price holds above the 100-day EMA (Exponential Moving Average) (in blue), currently at $7.53. A break above a falling trend line catalyzed LINK price for a 32% bullish move to $9.46 – a profit target highlighted by the 200-day SMA (in purple).
LINK/USD daily chart
LINK’s potential climb to $9.46 is supported by a buy signal from the MACD (Moving Average Convergence Divergence) indicator. A daily close above the 100-day coupled with the MACD holding above the mean line will probably add credibility to the Chainlink price bullish outlook.
On the other hand, shorting LINK could only prove profitable if bulls fail to break above the hurdle at $8.00. Trading below the 100-day EMA may confirm a bearish trend reversal, where Chainlink price could revisit lower support areas at $7.00, $6.50 and $6.00, respectively.
Information on these pages contains forward-looking statements that involve risks and uncertainties. Markets and instruments profiled on this page are for informational purposes only and should not in any way come across as a recommendation to buy or sell in these assets. You should do your own thorough research before making any investment decisions. FXStreet does not in any way guarantee that this information is free from mistakes, errors, or material misstatements. It also does not guarantee that this information is of a timely nature. Investing in Open Markets involves a great deal of risk, including the loss of all or a portion of your investment, as well as emotional distress. All risks, losses and costs associated with investing, including total loss of principal, are your responsibility. The views and opinions expressed in this article are those of the authors and do not necessarily reflect the official policy or position of FXStreet nor its advertisers.