Chainlink, a decentralized oracle system, is making significant strides to push the adoption of its technology. The firm recently announced a number of partnerships that show the intrinsic value behind its native cryptocurrency, LINK.
Over the last few days, this cryptocurrency surged over 20% and now several technical indicators estimate a retracement before the continuation of the bullish trend.
OpenLaw is an open-source protocol for commercial relationships. The firm is currently building a decentralized peer-to-peer protocol for creating legal agreements. On Aug. 14, 2018, OpenLaw teamed up with Chainlink to make its existing smart legal contracts simpler and more intuitive.
Assets (cryptocurrencies, tokens, etc.) transferred on OpenLaw can now be denominated in U.S. dollars. Then, using Chainlink’s middleware, we can calculate the equivalent amount of ETH at the moment of transfer
Now, after more than a year working together, OpenLaw published a video presenting the integration of Chainlink. The firm believes that both companies could transform the $12 trillion derivatives market using blockchain and smart contracts.
Additionally, Binance recently announced that it would be leveraging Chainlink’s technology to connect a wide variety of cryptocurrency data on the platform to blockchains. The idea is to support the growth of Decentralized Finance (DeFi).
The recent announcements are part of Chainlink’s effort to expand the adoption of its technology. The company is already working with Google and Oracle to create a bridge between legacy payment systems and databases with blockchains. And, rumors are circulating that connect it with China. LINK is showing that these efforts are paying off as it continues to outperform most cryptos in the market.
Eric Thies, a well-known cryptocurrency enthusiast and self-taught analyst, told CCN.com that LINK looks “as bullish as they come.”
I’d be lying if I said I haven’t been watching ChainLink incredibly close over the last week. I noticed a similar structure to Ethereum’s price behavior in 2016 or, dare I say, Bitcoin between 2011 and 2012. I wouldn’t be surprised to see LINK hovering around $10 and making it to the top 10 cryptocurrencies in CoinMarketCap by mid-2020.
On a short-term perspective, Thies saw an ascending triangle developing on LINK’s one-day chart. This technical pattern is the result of Chainlink’s price movements creating a horizontal line along with the swing highs and a rising trendline along with the swing lows. The height of the triangle, at its thickest point, provides a potential target upon the breakout point of the pattern, according to Investopedia. This estimates that LINK could be aiming to surge 20% to hit $3.40.
Thus far, LINK is up 11% from the breakout point, but Thies believes it could retrace to back-test the $2.83 support level before it continues rising. This idea coincides with the sell signal that the TD sequential indicator is currently presenting in the form of a green nine. This technical indicator predicts a one to four days correction before the continuation of the bullish trend.
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Last modified: November 14, 2019 2:12 PM UTC