Chainlink oracles go live on Arbitrum One as LINK price eyes 16% retracement
|- Chainlink price is attempting to move higher as it grapples with the $26.47 resistance level.
- Arbitrum One, a Layer 2 scaling network, has onboarded Chainlink oracles.
- LINK might undergo a minor retracement to $22 if it fails to climb higher.
Chainlink price has been on an uptrend despite the slow climb and massive consolidation. The recent upswing pierced a critical resistance level but failed to flip it into a support barrier. This move indicates a lack of willingness to surge. Considering how exhausted the Bitcoin price and many altcoins look, a minor retracement might be on its way.
Arbitrum One and Chainlink make headway
Arbitrum is a Layer 2 scaling solution developed by Offchain Labs that aims to increase the efficiency of transactions on Ethereum and reduce the costs associated with it. The integration of Chainlink oracles on Arbitrum One provides its users with native support for a plethora of USD-denominated prices from the Chainlink price feeds.
While this is just one step of the recent integration, Chainlink will offer its Verifiable Random Function (VRF) to help with on-chain dApps, gaming and NFTs, in addition to the Chainlink Proof of Reserve and more.
A co-founder of Offchain Labs, Ed Felten stated,
Integrating Chainlink into the Arbitrum One mainnet for secure oracles was an obvious choice given its proven track record and flexible architecture that can support access to any external resource and off-chain computation.
Unlike other projects that integrate one product from Chainlink, this development with Arbitrum gives it native access to Chainlink oracles and its other functionalities, allowing developers a direct line to the oracle networks and updated data feeds.
LINK price falters as it approaches barriers
LINK price is in a suspended state as it approaches the $26.47 resistance barrier. Although Chainlink price sliced through this level during its initial run-up, it failed to sustain above it. Moreover, Bitcoin price also shows signs of exhaustion after setting up a swing high at $46,800. Therefore, the oracle token is in a pickle and could head either way.
A decisive 12-hour candlestick close above $26.47 and a successful retest of the said barrier will indicate a resurgence of buyers and propel LINK higher. However, a failure might result in a downswing.
Assuming a rejection at $26.47, the Chainlink price will head to the $23.71 support barrier, roughly a 10% downswing. If the selling pressure increases here, LINK will likely shatter $23.71 and retrace to $22.06, where the oracle token might form a double bottom pattern, leading to the resurgence of an upswing.
LINK/USDT 12-hour chart
Regardless of the exhaustion, if the big crypto continues to climb higher, altcoins, including Chainlink price, will continue to set up higher highs. If this were to occur, LINK will shatter $26.47 and head toward the immediate resistance level at $30.72.
A decisive 12-hour candlestick close above $30.72 will invalidate the bearish thesis and project a further ascent to the range high at $35.39.
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