Crypto Trading

Chainlink (LINK) Price Analysis

Here Sam takes a look at what is currently the best performing crypto asset of 2019, Chainlink (LINK) price analysis. And this time we focus on crypto to crypto trading: LINK/ETH.

Chainlink (LINK) Price Analysis

Chainlink (LINK) has been in the crypto news quite a bit recently as it has been noted out as one of the best performing crypto assets of 2019. Its year-to-date return on investment is currently well over +600%. Meaning it is one of the only token/coin among the top 20 (by market cap) that has been consistently in the green.

The main problem Chainlink has set out to solve is that smart contracts cannot access any external data on their own. As the blockchains that power smart contracts do not usually support any methods of native communication with external systems. Currently, developers of smart contracts use centralized oracle services when needing to query external data. This is great, but what happens when the oracle provider has a failure? Your dApp would stop working! Chainlink markets itself as a decentralized oracle network to ensure this would not happen.

Let's take a look at the LINK/ETH pair for our price analysis, I believe in the context of Saturn Network being a decentralized exchange, it is much more interesting to look at how crypto to crypto markets perform. That being said, no matter which markets you are trading on, I always recommend keeping your eye what is going on in BTC/USD market.

The current market statistics of LINK, as of 9th July 2019, are as below:

  • The current trading price of the token is 0.01060250 ETH.
  • Current market cap is 3,824,041 ETH.
  • Current 24h volume is 344,581 ETH.
  • Circulating supply is 350,000,000 LINK.

LINK/ETH

Breakout Price Rally 28th June

On 28th June, LINK was trading in the 0.008 ETH price range, when it saw a big price rally. As you can see on the chart above, within 24 hours, it was up by 100.94% and trading in the 0.0149 ETH price range. By the end of July 1st, there was a slight a correction down to the 0.0103 ETH range but it did recover and has been trading sideways ever since.

Note the two horizontal black lines, LINK/ETH in the short term looks to trade in a volatile sideways in-between this price range of 0.0103 - 0.0149 ETH. This is because the market appears very undecided on what LINK should currently be valued at as a crypto asset.

LINK/ETH 1h Binance Market

We can see above, whenever the market goes down towards the 0.0103 ETH price range then the bears start to become tired and a price rally occurs. The price rally is normally very short but it can be quite a spike upwards, and then the cycle repeats.

  • Moving Averages - Above you can see a 9-day MA (red) has crossed over our 21-day MA (green) and gone back under, just today. And if you look back you will find many cross over points, another indication that this market is currently very volatile.
  • RSI - Currently 35, so not yet at the traditional 30 level that shows us clear oversold conditions. However, looking back LINK / ETH market does not generally reach this indicator level before seeing an upwards price rally.
  • Stochastic Oscillator - Both our fast stoch (3 day) and slow (14 day) are showing clear oversold conditions. July 8th has been a bearish day for LINK as it is currently down -2.96%, but the indication is another price rally will break out very soon.

What has caused this sudden price gain?

The recent rise in price has been caused by announcements such as LINK now being available on Coinbase and various partnerships that initially have caused a bit of a FOMO effect. Partnerships with Google and Credits, along with the fact it is currently the best performing cryptoasset of 2019 have definitely put some fear into investors that they may be missing out on potential profits.

So for the most part, a lot of the LINK action is purely speculation. That being said, I believe the recent announcements have simply made more people aware of what Chainlink has set out to solve in the industry. Techwise what they have outlined in the blockchain space will be very useful, which is why investors can see the potential for a higher price in the future. The 0.0103 ETH price point is what the market currently feels would be undervalued for LINK, which is why a price rally upwards always follows any trading at that range.

All it would take is a couple more solid partnership announcements, or demonstrations from projects using their tech for many more investors to buy in. Which is why the long-term looks to continue to be very bullish LINK, and I would expect to see trading at the 0.018 - 0.021 ETH price range before the end of the year.

Happy trading!

Please note, I am in no ways a financial advisor. Always do your own research.

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