After a big dip versus Bitcoin, LINK, Chainlink’s native cryptocurrency, is starting to recover.
The price of, Chainlink’s native cryptocurrency, LINK, has risen 10% in the last three days, despite a death cross on the LINK/BTC chart.
The LINK/BTC chart hit its first death cross since 2018, according to Josh Olszewicz, a cryptocurrency trader and technical expert.
Death Cross and LINK’s Rally Relief Enigma
The term “death cross” refers to a candle chart configuration that generally comes before a significant sell off in technical analysis. When the short-term moving average of an asset goes below the long-term moving average, it illuminates.
As an asset has a sharp downturn, this structure usually implies a short-term trend reversal.
In the 17 days between Nov. 23 and Dec. 11, the price of LINK dropped by roughly 30%. The death cross appeared on the LINK/BTC chart because to its steep short-term decrease. For the first time in two years, LINK’s short-term moving average went below its long-term moving average.
However, if an asset begins to rebound strongly from the death cross, a relief rally is expected. Because the indication occurs after a significant retreat, the likelihood of a substantial short-term upswing increases as the death cross appears.
LINK gained 10.5 percent in 12 hours on Dec. 13, boosted by the resurgence of the decentralized finance (DeFi) industry. Since then, LINK has been consolidating, but if LINK price continues above the $12.3 support level, the initial relief rally could lead to a broader upswing.
Chainlink’s Solid Foundation
Chainlink is an oracle network that feeds DeFi apps with pertinent market data.
The oracles of Chainlink are utilized by the majority of major DeFi protocols to collect information that is used throughout loans and other financial applications.
Messari’s founder, Ryan Selkis, stated that oracle infrastructure is critical for DeFi. Despite the fact that its value remains high, Selkis admits the importance of data for DeFi. He said that Oracle infra is crucial, even if we don’t think LINK is DeFi. On the collaboration front, Chainlink is unstoppable. I don’t understand the economics of $10 billion, but I understand the value of solid DeFi data pipes.
LINK’s continued partnerships and cooperation in the DeFi domain are a primary driving force. Unilayer and Dock have both implemented Chainlink’s oracles into their DeFi platforms in the last two days.
On December 10, Binance Chain incorporated Chainlink’s oracle network, allowing all decentralized blockchain applications to use Chainlink. According to a Binance blog post: As its suggested oracle solution, Binance Smart Chain (BSC) has successfully incorporated the Chainlink decentralized oracle network on its mainnet. As a result, any and all BSC smart contracts can now use Chainlink.
