• Chainlink has had a mediocre performance over the last few months, slipping to 22nd place in terms of market capitalization.
• However, a weekly chart reveals a bullish divergence with the RSI, signalling the potential end of a prolonged downtrend.
• In the short term, a bearish divergence could be seen, but Chainlink relies on strong fundamentals in 2023 that could become a bullish catalyst.
Chainlink has been a crypto project that has been gaining popularity in the past few years. Launched in 2017, LINK has become one of the top 10 cryptos in terms of market capitalization. However, the past few months have seen a bit of a decline in the LINK price. As of May 2021, LINK is currently ranked 22nd in terms of market capitalization.
Although the LINK price has had a somewhat mediocre performance over the past few months, there is the potential for LINK to outperform other cryptos in the near future. A weekly chart of the LINK price reveals an extremely bullish occurrence. This chart shows a bullish divergence with the RSI, indicating that the bears are losing their power in the market and that the LINK bulls are ready to control the market again. This could signal the end of the prolonged downtrend in the LINK price.
However, in the short term, there could be another drawdown for LINK. The 4-hour chart is showing a bearish divergence as the price is making new local highs while RSI is trending down, making new lower lows. This discrepancy indicates that the momentum is slowing. Nonetheless, LINK still relies on strong fundamentals in 2023, which could become the bullish catalyst that drives LINK’s price up.
One of the potential bullish catalysts in 2023 would be Chainlink’s low-latency pull-based oracles. This feature would enable users to pull data from off-chain sources and add it to the chain as needed. This could be a significant development for LINK, as it would make accessing and using data from off-chain sources much easier and faster.
Ultimately, the LINK price has had a somewhat mediocre performance over the past few months, but there is still potential for the LINK price to increase. The weekly chart shows a bullish divergence, indicating that the bears are losing power and that the LINK bulls are ready to control the market again. In the short term, the bearish divergence could be seen, but Chainlink still relies on strong fundamentals in 2023, which could become the bullish catalyst that drives LINK’s price up.