- Link prices surge, up 38.4 percent
- The involvement of Google may cement ChainLink’s position
Google’s interest is enough to propel Link’s prices to new highs. Consequently, ChainLink may end up dominating the Oracle market. Thanks to yesterday’s announcement, Link is up 38.4 percent. However, this appears to be the early stages of a possible mega rally.
ChainLink (Link) Price Analysis
Fundamentals
Mystic as they sound, so-called “Oracles” will revolutionize cryptocurrency and blockchain. The critical role of these connectors cannot be understated. While listing down potential game changers in the Ethereum blockchain, he confidently mentioned the Prediction markets.
Heavily reliant on smart contracts, the prediction markets, a burgeoning industry, will be limited if there are no trusted oracles. These bridges, in blockchain terms, process and translate outside information and link them with fragmented blockchains.
With ChainLink, their goal is to “provides reliable tamper-proof inputs and outputs for complex smart contracts on any blockchain.” In essence, ChainLink’s role is to feed blockchains “with real-world data, events, and payments.”
Through APIs, smart contracts, which, as per definition executes without external intervention, will be up-to-date because of ChainLink’s oracles. Therefore, Google Cloud is sensing an opportunity. After experimenting and linking ChainLink with BigQuery, Allen Day, a senior developer advocate, through a blog post, concludes, saying:
“We’ve demonstrated how to use ChainLink services to provide data from the BigQuery crypto public datasets on-chain. This technique can be used to reduce inefficiencies (submarine sends use case) and in some cases add entirely new capabilities (hedging use case) to Ethereum smart contracts, enabling new on-chain business models to emerge (prediction markets use case).”
Candlestick Arrangement
It couldn’t get better for Link bulls. Bottoming and syncing with Ethereum (ETH) price action, Link is up 38.4 percent from last week’s close. However, in light with fundamental factors — while also complementing technical candlestick arrangements — Link can quickly expand.
Notice that Link is trading within a bullish breakout pattern. Since the path of least resistance is to the north, the reversal from the 61.8 percent Fibonacci retracement could be the fuel that will drive Link to $3.2. That’s a feasible bull target as per Fibonacci extension rules based on May trade range.
Technical Indicator
Remarkably, the break above May high at $1.5 is with high trading volumes of 1.3 million against 360k. As a result, every dip is another buying opportunity for traders aiming at $2.6 and later $3.2 as aforementioned. Accompanying this revival should be high participation, preferably exceeding averages of 360k or even 1.3 million of June 13th.
Chart courtesy of Trading View. Image Courtesy of Shutterstock