- 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.
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. The author will not be held responsible for information that is found at the end of links posted on this page.
If not otherwise explicitly mentioned in the body of the article, at the time of writing, the author has no position in any stock mentioned in this article and no business relationship with any company mentioned. The author has not received compensation for writing this article, other than from FXStreet.
FXStreet and the author do not provide personalized recommendations. The author makes no representations as to the accuracy, completeness, or suitability of this information. FXStreet and the author will not be liable for any errors, omissions or any losses, injuries or damages arising from this information and its display or use. Errors and omissions excepted.
The author and FXStreet are not registered investment advisors and nothing in this article is intended to be investment advice.
Recommended Content
Editors’ Picks
Bitcoin Price Forecast: Analysts anticipate increased volatility as the US presidential election looms
Bitcoin price teased its all-time high of $73,777 last week but declined to trade below $69,000 on Monday. Analysts suggest that market volatility is expected to rise as the US presidential election approaches.
Litecoin poised for double-digit decline after breaking ascending trendline
Litecoin breaks and closes below an ascending trendline, signaling a change in market structure. On-chain metrics paint a bearish picture, as LTC’s dormant wallets are active, and the NPL indicator shows a negative spike.
Top 3 Price Prediction Bitcoin, Ethereum, Ripple: BTC, ETH and XRP decline ahead of US elections
Bitcoin (BTC), Ethereum (ETH), and Ripple (XRP) all faced resistance at crucial levels ahead of the US Elections, leading to a price decline. As of Monday, they neared key support levels, and a firm close below these marks could signal further declines.
21Shares files S-1 for XRP ETF amid ongoing tension between Ripple and SEC
21Shares filed an S-1 registration with the Securities and Exchange Commission (SEC) on Friday for an XRP exchange-traded fund (ETF). While the chance of approval is slim with the current SEC administration, the landscape could change after the upcoming elections.
Bitcoin: New all-time high at $78,900 looks feasible
Bitcoin price declines over 2% this week, but the bounce from a key technical level on the weekly chart signals chances of hitting a new all-time high in the short term. US spot Bitcoin ETFs posted $596 million in inflows until Thursday despite the increased profit-taking activity.
Best Forex Brokers with Low Spreads
VERIFIED Low spreads are crucial for reducing trading costs. Explore top Forex brokers offering competitive spreads and high leverage. Compare options for EUR/USD, GBP/USD, USD/JPY, and Gold.