- Chainlink price has been in a strong bullish trend in the past few weeks.
- The rally is likely because of the upcoming Chainlink 2.0 launch.
Chainlink price defied gravity on Tuesday as fear engulfed the cryptocurrency industry. LINK surged to a high of $9.24, which was the highest point in a few months. It has gained by more than 35% from its lowest level on October 13.
What is Chainlink 2.0?
Chainlink is one of the most useful platforms in the blockchain industry. It provides a solution known as oracle, which is used by most platforms. Some of the companies that use its products are Uniswap and AAVE.
Oracles are important tools in the blockchain industry. They are simply features that make it possible for developers to integrate off-chain data into the on-chain ecosystem. For example, a decentralized sports betting company can get live sports data and integrate it into its ecosystem.
Oracles can be used in other industries like DeFi and even NFT trading. Chainlink competes with other oracle companies like Band Protocol and WinkLink.
LINK price has been rising as investors wait for the upcoming transition to Chainlink 2.0. Chainlink 2.0 is a major change that is expected in the ecosystem in the next few weeks. It will transition the network into a decentralized oracle network.
Learn more about how to buy Chainlink.
It will also facilitate fast, reliable, and confidentiality preserving universal connectivity and off-chain computation for smart contracts. Further, it will introduce the concepts of decentralized oracle networks (DON). All these factors will be positive for dApps using Chainlink’s technology.
For Chainlink investors, the transition will introduce the concept of staking. Staking is the process where people store their LINK and earn rewards. It will help to ensure that nodes are incentivized to improve oracle integrity and efficiency in the long term. Most importantly, staking will help to protect most dApps that use Chainlink.
Chainlink price forecast
LINK price has been in a strong bullish trend in the past few weeks. This recovery culminated in the coin moving above the key resistance level at $8.55. It was a vital resistance since it was the highest point on September 28.
Chainlink has formed an ascending channel that is shown in purple. It has also moved above the 25-day and 50-day moving averages. The coin has moved slightly below the first resistance of the standard pivot point.
Therefore, there is a likelihood that Chainlink will continue rising as buyers target the next key resistance level at $10. A drop below the pivot point at $8.17 will invalidate the bullish view.
