The Chainlink price has joined the ongoing cryptocurrency sell-off. LINK, its native token, is trading at $19.53, which is about 18% below the highest level this week. Its market capitalization has declined to about $9 billion, making it the 22nd biggest cryptocurrency in the world.
LINK under pressure
Chainlink is an important blockchain platform that is built on Ethereum’s network. It provides hybrid oracles that enable developers to connect off-chain data to the blockchain. For example, a developer building a platform for a school can connect this data to the blockchain using Chainlink.
As such, it has many use cases. For example, retailers can use it to connect their logistics or supply chain data to the blockchain. The same is true with other industries like finance, manufacturing, and transport.
Therefore, many blockchain projects have embraced Chainlink in the past few months. Some of those that are using the technology are Aave, Synthetix, Hedera Hashgraph, Theta, and Filecoin among others.
#Chainlink provides the #blockchain economy with the oracle infrastructure it needs to scale and ensure a fair user experience across #DeFi, #NFTs, and numerous other use cases.
See how chains & L2s like @arbitrum, #Ethereum, @0xPolygon, & @solana are leveraging Chainlink 🧵👇 pic.twitter.com/CH0nLlfXU9— Chainlink – Official Channel (@chainlink) December 10, 2021
Chainlink also offers more features that developers can use. For example, it has a product known as Keepers that is incorporated with Ethereum, Polygon, and Binance Smart Chain (BSc).
This technology can help developers to automate critical functions of smart contracts like yield farming, rebasing, and automated trading. Many platforms also use its price feeds. LINK is the native token for its ecosystem.
The Chainlink price jumped this week as investors reacted to news that Eric Schmidt had joined the Chainlink Labs board. For starters, Eric was a CEO of Google for a few years. He later became the company’s chairman and is widely credited for the success that the company has had.
Today, Google is one of the biggest firms in the world. Therefore, analysts believe that Eric’s entry is a validation of the blockchain’s future.
Chainlink price prediction
The daily chart shows that the LINK price formed a double-top pattern at $37.38 a few weeks ago. The chin of this pattern was at around $21. The coin declined sharply since a double-top is usually a bearish sign.
Earlier this week, the Chainlink price retested the chin of the double-top pattern. This is known as a break and retest pattern and is a possible reason why the coin is sliding today.
Therefore, for now, I am not seeing any bullish signs for Chainlink. The likely scenario is where the price slips to the next psychological level of $15.
