- On Monday, the Chainlink is trading with a bullish bias at the 33.41 level, having soared 2.51% so far.
- Chainlink price prediction remains bearish below the 35.30 level as the pair has entered the overbought zone.
- Forex trading market participants should look for a buy trade above the $35.30 level with an initial target of $38.
On Monday, the Chainlink is trading with a bullish bias at the 33.41 level, having soared 2.51% so far. The day before, the LINK/USD closed at $33.59 after placing a high of $33.59 and a low of $29.55. The Chainlink price prediction remains bearish below the 35.30 level as the pair has entered the overbought zone.
Positive Developments in ChainLink Underpins LINK/USD
The LINK/USD surged on Sunday and reached its highest since May 23. The positive developments surrounding its network picked up the pace and accelerated the bullish momentum.
Chainlink is a leading oracle provider with about 281 crypto projects onboard during 2021. The network was launched in October 2020, and its verifiable randomness function (VRF) attracted decentralized applications. VRF provides an automatic source of randomness to guarantee that prizes and rewards are given out transparently and equitably.
Decentralized finance apps, social networks, NFT platforms, and interoperability initiatives can benefit from Chainlink’s secure connectivity between smart contracts and off-chain data and services.
The increasing hype about NFT boosts Chainlink demand.
With the boom and increasing hype of NFT, smart contracts, and DeFi, the adoption of Chainlink is also growing rapidly. A Switzerland-based telecommunications company, Swisscom, also chosen the Chainlink platform for a pilot program last month.
On August 10, an Ethereum-based decentralized exchange and liquidity provider, Bancor, announced that its upcoming version would integrate Chainlink Keepers to work as external triggers for smart contracts.
During August, all the NFT craze and DeFi boons have lifted the price of tokens related to platforms like Chainlink to their highest levels.
Weakness in the US dollar Supports Buying in LINK/USD
The soaring prices of the LINK/USD during the weekend could be due to the declining price of the US dollar. The Federal Reserve has been reluctant to provide any date or timeline regarding reducing asset purchases, and this has been weighing heavily on the US dollar.
Furthermore, the poor-than-expected NFP data on Friday also added extra pressure on the already declining US dollar. It dragged it to a 91.95 level against the basket of six major currencies. The weakness in the US dollar then added support to the rising prices of LINK/USD as both have a negative correlation.
Chainlink Price Prediction – Daily Technical Levels
Support Resistance
30.89 34.93
28.20 36.28
26.85 38.97
Pivot Point: 32.24
Chainlink Price Prediction – Daily Technical Analysis: Can it Break Above $35.50?
The Chainlink price prediction remains bearish below the $35.30 level as the pair has entered the overbought zone. The LINK price struggled to recover above the $35.30 resistance against the US Dollar but failed.
On the bearish side, the LINK/USD’s support prevails at a $31.60 level that’s been extended by a 50-day EMA. In the 4-hour timeframe, the 50 day EMA (exponential moving average) may extend support at the $31.50 level. However, a bearish breakout of this range could drive sharp selling until the $29.28 support level.
On the bullish side, the breakout of the $35.30 level may extend the buying trend until the $38.15 resistance level. Recently, the LINK/USD has closed a bearish candle below the $35.30 level. However, it’s not a bearish engulfing one. Thus, we can’t say if it suggests a trend reversal. Looking at the leading indicator, Stochastic RSI, it’s holding in an overbought zone. Thus, the chances of a correction dominate below the $35.30 level.
The Forex trading market participants should look for a buy trade above the $35.30 level with an initial target of $38. Alternatively, a sell limit can be placed below $35.30 to target the $31.60 level in the future. All the best.
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