November is starting to be an uncertain month for the crypto market. However, Chainlink (LINK) seems to be bullish as it has kept substantial gains from last week. The altcoin also performed well earlier today, establishing a local high of $7.96.
Chainlink’s price started a bullish trend after testing and confirming support at the $6.50 level. The price feed oracle token suffered a devastating October reversal, wiping away all of its September gains. However, it was able to recover around 6% before the month ended.
LINK is trading at a 1.49% gain as of writing. Its daily candle is also green and might just touch its local high before the end of today.
The DeFi Derivatives Market Has A New Oracle Solution from Chainlink
As the DeFi (decentralized finance) sector expands, Chainlink has responded by developing “ultra-low latency pull-based price oracles. The solution focuses on allowing and safeguarding this enormous on-chain market.” It forecasts that the DeFi derivatives market will expand more in the years to come. Therefore this growth will dramatically alter the way dApps create value.
According to a related blog post, “We anticipate that a testable version of this new pull-based Chainlink oracle solution will be ready by the end of the year.”
Over the years, Chainlink has been the de facto standard for receiving oracle-based price feeds. The protocol’s solutions are widely used by the crypto industry, particularly by smart contract infrastructures. Chainlink’s early entry into the DeFi derivatives market will offer it an advantage over its rivals. It might also boost the value of the network’s native token, LINK.
LINK’s price is currently hovering at $7.85. | Source: LINKUSD price chart from TradingView.com
What LINK’s 4-Hour Chart Says About Its Future Movement
ChainLink price movement shows market volatility after closure. This means that the price of ChainLink is becoming more dynamic, with less tendency to swing wildly to either extreme. The $8 upper bound of the Bollinger band is the most formidable barrier for LINK to break over. Bollinger’s band’s lowest limit is $7.5, where LINK finds the most support.
LINK/USD looks to be making positive price movement over the Moving Average. The upward trend in the market appears to be continuing. But the LINK/USD exchange rate is trending higher, suggesting the market is expanding. There are signs that the market could go up.
The Relative Strength Index (RSI) for ChainLink at its current price of 55 indicates a rather steady market for cryptocurrencies. To put it another way, Chainlink is now trading above its central-neutral value. The Relative Strength Index also seems to trend higher, suggesting a rising market. The RSI value rises when purchasing activity is on the upswing.
Where Does Link Go From Here
It’s worth noting that LINK’s daily chart readings were contradictory, indicating both a rise and a fall. For instance, the Money Flow Index (MFI) rose and approached overbought.
The negative Chaikin Money Flow (CMF) also fell near neutral. On the other hand, the Exponential Moving Average (EMA) Ribbon showed a bullish crossover when the 20-day EMA switched places with the 55-day EMA. However, LINK’s Bollinger Bands indicated substantial volatility. So, the question of where the price of LINK will go in the next few days is one that only time can answer.
Featured image from Pixabay and chart from TradingView.com