Chainlink Price Prediction: LINK Struggles To Break Above $23.50 Resistance

By August 5, 2021Polkadot
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  • The Chainlink price is hovering between $23.50 and $22 for the last 4 days.
  • The relative strength index (RSI) is trending at the edge of the overbought zone.

The Chainlink price is presently stuck below the $23.50 resistance barrier following a recent bullish rally. Before that, LINK had dropped from $20 to $13.70 between July 7 and July 20. This drop has flipped the 20-day SMA from resistance to support.

Chainlink Price Can’t Cross Above $23.50 Resistance

Over the last four days, the Chainlink price is trending between $22 and $23.20. The $23.50 resistance barrier has prevented an upward surge. Before this, LINK had jumped from $13.75 to $23 between July 21 and July 31

During this jump, LINK managed to:

  • Flip the 20-day and 50-day SMAs from resistance to support.
  • Flip the parabolic SAR from negative to positive.

The recent sluggish movement has prevented the relative strength index from entering the overbought zone.

Image: LINK/USD daily

LINK/USD daily chart 080421

As per IntoTheBlock’s IOMAP, the Chainlink price dropped after meeting a strong resistance barrier at $23.50. Previously, at this level 10,000 addresses had purchased almost 13 million LINK tokens at this line.

Image: IntoTheBlock

LINK/USD volume chart 080421

ParaSwap Will Integrate Chainlink Keepers

ParaSwap recently announced that it is integrating Chainlink Keepers on Ethereum to bring limit order functionality to its DEX aggregator protocol. ParaSwap is a DEX aggregator that routes users’ trades through one or multiple different DEXes to get them the best price with the least amount of slippage. Chainlink Keepers use decentralized and provably reliable off-chain computation to monitor user-defined conditions and then call on-chain functions once the conditions are satisfied.

ParaSwap said that it will leverage Chainlink Keepers to trigger the execution of users’ limit orders when asset prices cross predefined price points. This will empower traders to better manage their portfolios and hedge against volatility without manual interventions, ultimately helping them sleep better at night.

Currently, ParaSwap is compatible with most DEXs, including Uniswap, SushiSwap, Bancor, Kyber Network, Curve, 0x, and more. ParaSwap noted that it could split a single transaction into multiple orders across various DEXs and route orders through different assets.

"In order to improve the utility of ParaSwap, we wanted to bring limit order functionality to our DEX aggregator. This will allow users to set trades that execute only once certain price points are hit, such as selling 10 ETH only if ETH drops below $2000 USD or buying 10 ETH only if ETH goes above $2200."

The firm said that Chainlink Keepers provides a decentralized solution that is cost-effective, reliable, and upholds the same security guarantees of the blockchain. Chainlink Keepers will be used to monitor users’ limit orders off-chain against global asset prices and execute them on-chain in a verifiable way once certain price points are hit, it added.

Mounir Benchemled, Founder of ParaSwap, said:

“Integrating Chainlink Keepers will enhance the trading experience on ParaSawp by empowering users to attach custom conditions to their trades. Given the historical reliability of Chainlink services and their optimizations around decentralization and low fees, our users will have a cost-efficient and highly reliable way to automate trades while still anchoring the security of limit order functions to the underlying blockchain.”

Chainlink Price Is Expected To Reach These Levels

The Chainlink price could potentially drop to the $20.50 support wall.


Ethereum

Ethereum was in the green for the better part of Wednesday and ended the day higher by over 8%.

It started the day trading in a range around the 38.2% Fibonacci support at $2490.3.

By midday, bullish momentum shot up. The bullish momentum was so high that Ethereum broke through the 23.6% Fibonacci at $2580.4 with high volumes.

It sustained this momentum all through the afternoon, and by early evening, had tested multi-month resistance at $2726.3.

However, this resistance proved quite strong, and Ethereum consolidated around it for the last few hours of the day.

At the time of writing, it was trading at $2680.8 and was up by about 7%. It started the day in a continuation of the consolidation pattern that started on Wednesday around the 2726.3 multiple-month resistance.

ETH/USD 1-hour chart 080521

A glance at the day ahead

In the day, the key level to watch will be the multiple-month resistance at $2726.3.

In the event that this resistance is broken, it would be an indicator that bulls are firmly in control.

In such a scenario, Ethereum could easily test prices above $2800 in the day.

However, if bulls cannot push and sustain Ethereum above the multi-month resistance at $2726.3, then two scenarios could play out.

The first one is where bearish volumes increase. If this happens, then the key level to watch would be the 23.6% Fibonacci at $2580.4.

If bears are strong enough to push Ethereum through this support, then prices below $2500 could be possible in the day.

The second scenario is where volumes decline in the broader market. In such a scenario, Ethereum could trade in a range between the multi-month resistance at $2726.3 and the 23.6% Fibonacci support at $2580.4.

A glance at the technicals

Key resistance: Multiple month resistance at $2726.3

Key support: 23.6% Fibonacci at $2580.4

Litecoin

Litecoin was bullish for the better part of Wednesday, and by the end of the day, was up by over 3.8%.

It started the day trading in a range between the 38.2% Fibonacci resistance at $139.68 and the 50.0% Fibonacci support at $136.54.

By midday, Litecoin bounced off the 50.0% Fibonacci support at $136.54, and with high volumes.

Buying volumes were so high that by early afternoon, Litecoin blasted through the 38.2% Fibonacci resistance at $139.68.

Litecoin sustained this momentum all through the afternoon, and by early evening, had tested the 23.6% Fibonacci resistance at $143.48.

However, this resistance proved quite strong, and Litecoin consolidated around it for the last three hours of the day.

At the time of writing, it was trading at $143.49 and was up by about 3%. It started the day in a continuation of the consolidation pattern that started on Wednesday around the 23.6% Fibonacci resistance at $143.48.

LTC/USD 1-hour chart 080521

A glance at the day ahead

In the day, the key level to watch will be the 23.6% Fibonacci at $143.48.

If this resistance is broken, it would be an indicator that bulls are in control.

In such a scenario, the next level to watch would be weekly resistance at $146.06. If it breaks through this level in the day, then Litecoin could test multi-week resistance at $149.75 in the day.

However, if bulls cannot push and sustain Litecoin above the 23.6% Fibonacci resistance at $143.48, then two scenarios could play out.

The first one is where bears take control. If this happens, then the key level to watch would be the 38.2% Fibonacci support at $139.68.

If bears are strong enough to push Litecoin through this support, the 50.0% Fibonacci support at $136.54 would come into play.

If it breaks through this level, then prices below $130 could be possible in the day.

The second scenario is where volumes decline in the broader market. In such a scenario, Litecoin could trade in a range between the 23.6% Fibonacci resistance at $143.48 and the 38.2% Fibonacci support at $139.68.

A glance at the technicals

Key resistance: 23.6% Fibonacci at $143.48

Key support: 38.2% Fibonacci at $139.68

Ripple’s XRP

Ripple’s XRP was bullish for the better of the day, and by the end of the day, it was up by about 4%.

XRP started the day trading in a range on the 38.2% Fibonacci support at $0.7070.

However, by midmorning, bears tried to take control, but they failed with buying momentum rising in the broader market.

What followed is that bulls took control from that point on.

They sustained this momentum all through the afternoon, and by early evening, XRP had tested the 23.6% Fibonacci resistance at $0.7339.

However, this resistance proved quite strong, and XRP consolidated around it for the last three hours of the day.

At the time of writing, XRP was trading at $0.7321 and was up by about 3.96%. It started the day in a continuation of the consolidation pattern that started on Wednesday, around the 23.6% Fibonacci resistance at $0.7339.

XRP/USD 1-hour chart 080521

A glance at the day ahead

In the day, the key level to watch will be the 23.6% Fibonacci resistance at $0.7339.

If this resistance is broken, it would be an indicator that bulls are firmly in control.

In such a scenario, the next level to watch would be weekly resistance at $0.7538. If it breaks through this resistance, then multi-week resistance at $0.777 could be tested in the day.

However, if bulls cannot push and sustain XRP above the 23.6% Fibonacci resistance at $0.7339, then two scenarios could play out.

The first one is where bearish volumes increase. If this happens, then the key level to watch would be the 38.2% Fibonacci at $0.7070.

If bears are strong enough to push XRP through this support, the next significant level to watch would be the 50.0% Fibonacci at $0.6849.

Pushing through this support could see XRP test prices below $0.65 in the day.

The second scenario is where volumes decline in the broader market. In such a scenario, XRP could trade between the 23.6% Fibonacci resistance at $0.7339 and the 38.2% Fibonacci support at $0.7070.

A glance at the technicals

Key resistance: 23.6% Fibonacci at $0.7339

Key support: 38.2% Fibonacci at $0.7070


  • The Ethereum London hard fork launches as investors prepare to sell the news.
  • EIP-1559 proposes a new base fee mechanism that will see currently exorbitant gas fees reduced significantly.
  • Bitcoin exchange outflows surge, indicating less selloff risk in the coming sessions or days.
  • Ripple is wriggling at the edge of a cliff with losses under $0.7 in the offing.

In the wake of the corrections experienced across the market from Monday, selected crypto assets to change the narrative on Thursday, reporting impressive gains. Some of these tokens included Uniswap, AAVE, and Polkadot. Uniswap and AAVE rallied after Bitwise Investments launched new funds to expose Wall Street investors to the decentralized finance (DeFi) sector.

Bitcoin defended the support at $38,000 and tried to close the gap to $40,000, but a correction soon occurred, retesting the same level. On the other hand, Ripple has managed to hold above $0.7, but gains toward $0.8 remain a pipe dream.

Ethereum London Hard Fork Begins on Block 12,965,000

The much-awaited and controversial upgrade dubbed London is taking place on the Ethereum network. Crypto enthusiasts have expressed their excitement for the upgrade, with EIP-1559 stealing the show. The heavily discussed proposal, EIP-1559, hopes to reduce the high gas fees on the network.

However, it is likely to reduce miner earnings because the base transaction fee collected will be burned after being sent to an unrecoverable wallet. The other proposals will focus on smart contracts and provide a framework for future upgrades ahead of Ethereum 2.0.

Ethereum Price Lifts Toward $2,700

Ethereum price has closed the gap to $2,800 earlier in the day but met massive headwinds ahead of the hard fork. At the time of writing, Ether is trading above $2,600 while bulls build momentum for gains above $3,000.

A break past $2,800 will most likely bolster Ether past $3,000 as speculation hits the roof. Nevertheless, we are uncertain if Ethereum will sustain the uptrend because some investors could consider selling news and taking profits early.

ETH/USD 12-hour chart

ETH/USD 12-hour chart 080521

The token’s downside is protected by the ascending parallel channel’s lower boundary. If this support holds, alongside the buyer concentration at $2,600, potential declines will be nullified.

Bitcoin Price Bullish Set Up As Exchange Outflows Surge

After rising to test the barrier at $40,000 on Thursday, the bellwether cryptocurrency met a massive headwind, resulting in an immediate correction. The crucial support at $38,000 was tested for the second time this week, but bulls took refuge at this level.

Meanwhile, Bitcoin is pivotal at $38,000, whereby there is a harrowing fight between the bears and the bulls. Note that sustaining the price above this level would keep the focus at $40,000 and eventually allow buyers to control the price completely.

However, if losses close under $38,000, we expected the bearish calls to $35,000 to begin materializing. Notice that the Moving Average Convergence Divergence (MACD) indicator is bearish at the moment. The sell signal presented on August 2 still prevails, encouraging sellers to flock to the market.

BTC/USD 12-hour chart

BTC/USD 12-hour chart 080521

Meanwhile, it is essential to keep in mind that Bitcoin exchanges outflows have just spiked, according to on-chain data by Santiment. As more holders take their coins off the exchanges, it indicates less selloff risk. Therefore, massive declines could be unlikely in the coming days while Bitcoin looks to cross the bridge at $40,000.

Bitcoin Exchange Flow Balance 080521

Ripple Price Holds Dears To This Crucial Support

The cross-border money remittance token moves toward $0.7 after failing to endure the harsh journey to $0.8. Analysts anticipate a rebound at this crucial level, which will lead XRP into consolidation or trigger fresh gains.

Currently, the MACD is level at the mean line, implying that bullish and bearish pressure is relatively equal. Nonetheless, the Relative Strength Index (RSI) leans toward the bears emerging winners in this brawl.

XRP/USD four-hour chart

XRP/USD 4-hour chart 080521

If the immediate support shatters, losses will intensify toward $0.6. However, the 100 SMA and the 200 SMA are in line to prevent Ripple from falling sharply.

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