The decentralized oracle service Chainlink, along with its proprietary cryptocurrency LINK, has shown notable growth over the recent weeks. Despite undergoing a downward adjustment since its peak of $17.6 in late December, the highest in 20 months, LINK is displaying encouraging signs of an upward trend.
Will the token be able to reach $25? We are here to find out, evaluating past LINK price movements, use cases of the network and everything else that may push the price further up the valuation ladder.
LINK’s Price Critical Resistance Points
Prominent cryptocurrency expert has pinpointed a key acquisition range for Chainlink, situated between $14.8 and $15.2, which is just below LINK’s current price of $15.415 on Gate.io.
In this price band, a significant number of holders (17,650) have amassed around 85.12 million LINK tokens. With minimal obstacles ahead, LINK is seemingly geared up for a progression towards the $25 threshold.
Other analysts suggest that if LINK maintains its current positive trajectory observed over the last week, it could quickly ascend to the $25 level. An examination of LINK’s daily trading chart reveals that the forthcoming resistance levels, which need to be surpassed to aim for $20, are $15.55, $16.69, and $16.92. Overcoming these barriers would set the stage for a steady march towards $25.
It’s crucial to acknowledge that without significant barriers, the future path of LINK’s price remains uncertain. Should there be a price pullback or increased selling activity, LINK might find itself with inadequate support levels.
A closer look at LINK’s daily chart indicates that the initial support level in a downward scenario would be around $14.22. Following this, the next support is seen at $13.31. A further dip might challenge the support at $11. Breaking this level could imply a significant shift in LINK’s four-month upward trend.
Chainlink’s Ecosystem Evolution
Amidst the ongoing tug-of-war between bullish and bearish forces in the LINK market, Chainlink’s ecosystem continues to show significant advancements in key indicators. The circulating market value of Chainlink stands at $8.35 billion, marking a healthy 3.58% growth.
Data from Token Terminal reveals that Chainlink’s revenue in the last month is approximately $11.67 thousand. However, this denotes a 54.16% decrease from the preceding period, suggesting a drop in profits during this interval.
The fully diluted market capitalization of Chainlink, accounting for the maximum possible number of LINK tokens, is around $14.82 billion, witnessing a modest rise of 3.48%.
Annually, Chainlink has generated revenue of about $219.81 thousand, reflecting a 2.64% increase and signifying a steady rise in the entity’s earnings over the year.
In terms of financial ratios, Chainlink’s price-to-fully-diluted ratio stands at an impressive 68,246.47x, comparing the market capitalization with its fully diluted counterpart. This ratio indicates the premium investors are willing to pay for future potential tokens.
Similarly, the price-to-sales ratio, based on the fully diluted market capitalization, is also 68,246.47x. This figure evaluates the company’s market valuation against its annual revenue, indicating the amount investors are ready to pay for each dollar of sales.
What is Chainlink?
Chainlink is a decentralized network that aims to bridge the gap between blockchain technology and real-world applications. It functions as an oracle network, providing a reliable and secure way to bring external data onto blockchain platforms. The core purpose of Chainlink is to enable smart contracts on the blockchain to interact with external data sources, APIs, and payment systems.
This interaction allows smart contracts to execute based on data that does not exist on the blockchain, such as weather information, stock prices, or flight statuses, making the smart contracts more useful and applicable in real-world scenarios. Chainlink’s approach enhances the capabilities of smart contracts, making them more functional and accessible for various industries, ranging from finance and insurance to supply chain management. The native token of Chainlink, LINK, is used to pay for services within the network, incentivizing data providers and node operators to maintain the integrity and accuracy of the data fed into the blockchain.
Chainlink is real
Numerous companies and projects across various industries have integrated Chainlink to leverage its oracle services for enhanced functionality and reliability. Among them, some notable names include Google, which uses Chainlink to connect BigQuery, its cloud-based data warehouse, with blockchain applications.
Swift, the global interbank communication network, has also experimented with Chainlink to enhance transaction processing in its vast banking network. In the decentralized finance (DeFi) sector, leading platforms like Synthetix and Aave utilize Chainlink for accurate and tamper-proof price feeds, vital for their lending and trading services.
Additionally, Chainlink’s oracles are employed in weather insurance products, like Arbol, providing data for smart contracts that trigger automatic insurance payouts based on weather conditions. These collaborations underscore Chainlink’s versatility and its growing importance in bridging blockchain technology with real-world data and services.