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Chainlink is a decentralized oracle network for smart contracts.
Its native LINK token surged 13% over the past week
Token Shows Strong Bullishness, But Momentum Remains Low
Chainlink LINK/USD ranks as the 23rd largest crypto asset with a market capitalization of $3.5 billion. It is considered the most secure and flexible infrastructure in the crypto blockchain space.
According to its website, the platform is a decentralized oracle network. It provides tamper-proof inputs, outputs, and computations to power advanced smart contracts on any blockchain. Chainlink also offers passive income opportunities through staking rewards.
Despite the prolonged correction in the crypto market, LINK is making significant profits. Over the past 24 hours, its native token, LINK, has surged 4.51%, with a weekly increase of 13.35%. Similarly, the token saw him increase 76% in his daily trading volume to $369 million.
The reasons behind the positive gains have not been identified. However, the recovery around the DeFi segment may have partially contributed. Top DeFi projects MakerDAO and Lido earned 1% and 6% in total value locked in one week. Chainlink is strategically positioned as a blockchain that powers smart contracts.
Its technical outlook points to a bullish trend for the LINK token, but the RSI momentum indicator points to something else.
Source: Trading View
LINK is currently redeeming at $7.15. According to the daily chart above, the token is approaching the $7.4 resistance, which is the immediate resistance level. Since testing the $6 support on Aug. 29, the trend has been picking up steadily.
Additionally, the trend following indicator MACD looks green. It has crossed the signal line from bottom to top. However, the RSI is a neutral 50. Chainlink needs to attract more buyers to gain enough momentum to clear the $7.4 resistance level.
The current level does not present a full buy entry. Investors should wait for LINK to clear the next resistance level. It should also be noted that the Momentum He indicator turns positive and becomes an entry opportunity.
