- Chainlink has remained in a tight range in the past few days.
- Ethereum Merge and future updates will likely have a positive impact on its ecosystem.
Chainlink price has been in a tight range in the past few days as investors focus on the recent Ethereum Merge and the upcoming SmartCon Conference in New York. It rose to a high of $7.76, which was slightly above this month’s low of $6.24. It has a total market cap of over $3.7 billion.
LINK makes a slow recovery
Chainlink is a leading blockchain platform that provides oracles for hybrid smart contracts. These oracles are important in helping developers bring off-chain data to the on-chain ecosystem. For example, a developer can bring pricelists of key assets like stocks and commodities to their decentralized projects.
The most common product offered by Chainlink is known as price feeds. These price feeds are used by leading projects like Aave, Compound, Frax, dYdX, and Synthetix.
Chainlink has also expanded its ecosystem in the past few months to include more products that are useful to developers. For example, it introduced a product known as Verifiable Random Number Generators (VRF), Keepers, Proof of Reserve, and tools for cross-chain communication. All these tools are used by developers to handle some of their biggest challenges.
Chainlink price is reacting to the recent Ethereum Merge that successfully transitioned the project into a proof-of-stake network. The main impact of the merge is that the process used to confirm transitions in the network will change.
For Chainlink, what comes next is the most important since the developers will make upgrades to make the network faster and less expensive. As a result, it will likely make DeFi more mainstream, which will benefit Chainlink and other big players.
The next key catalyst for Chainlink price will be the upcoming SmartCon Conference that will happen in New York. It will give developers a chance to show what they are building and make important announcements.
Chainlink price prediction
The daily chart shows that LINK price has been in a tight range in the past few weeks. It is trading at $7.65, which is slightly above the lowest level this month. At the same time, it has moved to the 25-day and 50-day moving averages. A closer look shows it has formed a head and shoulders pattern.
Therefore, there is a likelihood that the coin will have a bearish breakout in the coming days. If this happens, the next psychological level to watch will be at $5. A move above the resistance level at $8.3 will invalidate the bearish view.
