The Chainlink price has had a somewhat mediocre performance over the past few months. Once a cryptocurrency that was within the top 10 by market capitalization, LINK has currently slipped to 22nd place. However, within the next few months, Chainlink could be poised to outperform other cryptocurrencies.
In addition to the fundamentals, LINK’s weekly chart shows an extremely bullish occurrence. The chart reveals that the LINK price has formed a bullish divergence with the RSI on a weekly basis. The bullish divergence is shown by the fact that the price has recently fallen to new local lows, while the RSI is not making a new low.
This shows that the bears are losing power and that the LINK bulls are ready to control the market again. Ultimately, the bullish divergence could signal the end of the prolonged downtrend.
LINK showing a bullish divergence, weekly chart | Source: LINKUSD on
However, in the short term, there could be another drawdown for LINK. The 4-hour chart is showing a bearish divergence as the price is making new local highs while RSI is trending down, making new lower lows.
Although the market is taking a bullish stance on Chainlink, the discrepancy means that momentum is slowing.
Bearish div on 4-hour chart | Source: LINKUSD on TradingView.com
Chainlink Relies On Strong Fundamentals In 2023
A bullish catalyst in 2023 might become Chainlink’s low-latency pull-based oracles. Instead of regularly pushing data to the chain based on predefined conditions, the oracle reports will be made available off-chain and added to the chain by users as they are needed.
This technical improvement was announced by Chainlink in early November. As Chainlink’s community ambassador “ChainLinkGod” on Twitter, this has massive implications for dApp users and developers.
They can use the technology to increase leverage, lower trading fees, and improve the UX. Additionally, the oracle reports can be kept private until transactions are settled on the chain. “Combined with the high-frequency nature of the data, oracle frontrunning can be mitigated,” the ambassador says.
This is a game-changer, especially for decentralized derivatives protocols, which could see a massive influx in 2023 given the antics and collapses of centralized exchanges in 2022, as it makes them more competitive.
The LINK price could benefit from the hype and increased usage, as well as from the partnership with SWIFT. As in late September 2022, the Society for Worldwide Interbank Financial Telecommunications (SWIFT) has partnered with Chainlink to connect the global financial ecosystem to almost any blockchain.
The World Economic Forum estimates that up to 10% of global GDP will be stored and transacted via distributed ledger technologies by 2027, and tokenized markets could be worth up to $24 trillion by 2027, according to a new .
If Chainlink could be a part of this development alongside SWIFT, the LINK bulls can easily take over and push the price upward.
Featured image from Binance Academy, Chart from TradingView.com
Jake Simmons, a dedicated crypto journalist, has been passionate about Bitcoin since 2016 when he first learned about it. Through his extensive work with wncen.com and Bitcoinist.com, Jake has become a trusted voice in the crypto community, guiding newcomers and seasoned enthusiasts alike towards a deeper understanding of this dynamic field.
Read more
His mission is simple yet profound: to demystify Bitcoin and cryptocurrencies and make them accessible to everyone.
With a professional career in the Bitcoin and crypto scene that began right after graduating with a degree in Information Systems in 2017, Jake has immersed himself in the industry. Jake joined the NewsBTC Group in late 2022. His educational background provides him with the technical prowess and analytical skills necessary to dissect complex topics and present them in an understandable format. Whether you are a casual reader curious about Bitcoin or an investor seeking to navigate the latest market trends, Jake’s insights offer valuable perspectives that bridge the gap between complex technology and everyday usage.
Jake is not just a reporter on technological trends; he is a firm believer in the transformative potential of Bitcoin over traditional fiat currencies. To him, the current financial system is on the brink of chaos, propelled by unchecked government actions and flawed Keynesian economic policies. Drawing from the principles of the Austrian school of economics, Jake views Bitcoin not merely as a digital asset but as a crucial step towards rectifying a failing monetary system. His libertarian views reinforce his stance that just as the church was separated from the state, so too should money be freed from governmental control.
For Jake, Bitcoin represents more than just an investment; it's a peaceful revolution. He envisions a future where Bitcoin fosters a sustainable and responsible financial framework for generations to come. His advocacy is not about opposition but about evolution, about laying the groundwork for a system that prioritizes transparency and equity over secrecy and inequality.
As a journalist, Jake’s articles are crafted with the precision of a scholar and the passion of a true believer. He provides not only news but also thoughtful analysis that connects the dots between daily developments and larger economic theories. His work is a beacon for those lost in the technical jargon often associated with crypto discussions, illuminating the practical implications and benefits of these technologies.
In summary, Jake Simmons is not just reporting on a revolution; he wants to be part of it, fully committed to enhancing public understanding and adoption of Bitcoin and cryptocurrencies. His work is more than just a collection of articles; it’s a resource, a guide, and a companion for anyone ready to explore the potential of this digital frontier. Whether you are taking your first steps into crypto or are a veteran looking to stay on top of the latest trends, Jake’s insights provide clarity and foresight in an often unpredictable industry. Join him on this journey to reshape the world of finance, one post at a time.
You can engage with his latest takes on Twitter: @realJakeSimmons.
Close
Disclaimer: The information found on NewsBTC is for educational purposes
only. It does not represent the opinions of NewsBTC on whether to buy, sell or hold any
investments and naturally investing carries risks. You are advised to conduct your own
research before making any investment decisions. Use information provided on this website
entirely at your own risk.
