LINK/USD Tight Range Bound

Posted by John Kelvin on Oct 16, 2019 5:53:01 AM

The week started with a reversal, after reaching $3 which is considered to be the expected resistance.LINKUSD

The USD pair saw a 100% gain after it moved from $1.43 up to $3 in 16 days. Taking the 16th position in the CoinMarketCap, LINK has continued to perform well with an ROI of 1,357.81%.

Chainlink (LINK) is a decentralized oracle service, which aims to connect smart contracts with data from the real world. Since blockchains cannot access data outside their network, oracles are needed to function as data feeds in smart contracts. Oracles provide external data (e.g. temperature, weather) that trigger smart contract executions upon the fulfillment of pre-defined conditions. Participants on the Chainlink network are incentivized (through rewards) to provide smart contracts with access to external data feeds. Some coins have been moved to start implementing the Oracle which will provide external data for them.

As mentioned, the price of LINK has continued to respect the resistance and support presented by it. Resistance and support levels are the most important part of technical analysis, pointing out the demand and supply level - and at the same time - pointing out the level traders are willing to buy and close a position.

Resistance is the antithesis of support. It's defined by selling (actual or potential) at a level sufficient in volume to satisfy all bids and hence, prices from going higher for a time. Support and resistance, as thus defined, are nearly but not quite synonymous with demand and supply respectively.

Resistance is a price level where selling is strong enough to interrupt or reverse an uptrend. Support is a price level where buying is strong enough to interrupt or reverse a downtrend.

This week started with a pull back from the resistance, not neglecting the fact that support and resistance are important.

LINKUSD UPDATE CHART

Technical analysis suggests the continuation of price to the downside to reach the near support at $2.039 (which is the near support level).

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