Live Chainlink Price Chart - LINK Price News, Analysis & History
Chainlink (LINK) represents a novel concept in cryptocurrency, namely the incentive to create a global network of computers that will then provide reliable real-world data to smart contracts. The smart contracts will then run on top of blockchains, and Chainlink is aiming to support all blockchain-based smart contract networks. The native currency of the network is known as LINK.
Chainlink incentivises data providers, which its creators describe as ‘oracles’, to act as a bridge between blockchain smart contracts and external data sources. Founded in 2017, Chainlink has expanded rapidly, having initially focused on collaborating with Ethereum.
So in this article, we’re going to assess issues related to the pricing of Chainlink.
Key Chainlink Price Metrics
Chainlink Price Graph & Exchange Rate
Chainlink (LINK) Price History
Chainlink became hugely prominent in 2020 and has been extremely successful financially as a result. The price of Chainlink rose from around $2 at the start of the year to a peak of nearly $20 during August.
It then experienced another surge the following year, reaching an all-time high of $52.70 in May 2021.
3 Key Instances for the Evolution of Chainlink Price
As Chainlink became increasingly prominent in 2020, the company announced a partnership with Polkadot in February. Polkadot is a blockchain technology firm that helps blockchain networks build connections with other similar companies. February was a busy month for Chainlink, as it also announced partnerships with Ethereum Classic and several other smaller DeFi projects and dApps.
In June 2020, Chainlink’s parent company, SmartContract, partnered with China’s national Blockchain Services Network, with the intention of obtaining and organising off-chain data. This was considered highly advantageous for Chainlink going forward.
In July 2020, the partnership between Chainlink and Binance was another major boost for the data access of the company. Shortly afterwards, Chainlink became the fifth-largest digital asset by market capitalisation, overtaking the highly-established Bitcoin Cash.
Key News for Chainlink Price
There are many factors that contribute to the price of Chainlink, but it is clear that the Covid-19 health crisis will be the defining issue in the immediate future. The pandemic has generally been bullish for cryptocurrency which is seen as an alternative store of value in testing times for the economy.
However, the economic recovery that will be necessary after a series of lockdowns across the planet means that these are undoubtedly uncertain times. Generally, the prognosis of cryptocurrencies such as Chainlink should be positive, but there are definitely unpredictable and choppy waters ahead.
Chainlink Price Technical Analysis: How to Identify Good Entry/Exit Points When Trading
There are a variety of investment methods that you can use to find the right time to buy Chainlink, but one of the most valuable is technical analysis. This technique is used widely by some of the most successful investors.
Technical analysis enables you to generate trading signals, which then inform your investment activity going forward. For example, long positions can be entered when the market reaches a particularly strong support level.
Patterns created by technical analysis can inform investors about the future direction of the market. As you spot a pattern forming, you can react accordingly.
Have a Clear Goal
One of the most important aspects of Chainlink trading, and indeed dealing with any cryptocurrency, or any form of trading at all, is to always have a clear goal in mind. Timing your entry and exit from the cryptocurrency marketplace is never an exact science, and this means that it is important to develop a strategy and stick to it.
Remember why you have entered a particular market, and what you hope to achieve by doing so. It's also important to practice proper risk management on all of your trades, in order to ensure that you mitigate risk. Implementing this strategy will result in much more successful cryptocurrency trading.
Make Use of Analysis Tools
There are a wealth of analytical tools available to Chainlink traders, but one of the most valuable is laddering. This is particularly worthwhile, as laddering enables you to eliminate some of the risk associated with entry decisions in particular.
Entering the market gradually tends to be beneficial, as it mitigates against the effects of any market volatility. If you believe that the price of Chainlink will increase after a bearish period, it's hard to catch the bottom of this trend. Entering gradually with a series of small trades means that your entry price is safer. Laddering is used by a wealth of successful traders.
Another technique that is well worth bearing in mind when trading Chainlink is volume analysis. Sudden changes in the volume of trading can indicate that the market is about to enter a new position. So paying heed to these signals can provide a real insight into future trends.
Investors can also better understand the cryptocurrency market by using charting. Stock charts include valuable information such as price and volume, moving average lines, and relative strength lines, and plotting the behaviour of these over time can help investors better understand the future direction of trading.
Fundamental and Sentimental Analysis
Two other valuable concepts are fundamental and sentimental analysis. The first of these involves in-depth research into the fundamental characteristics of a particular asset or project. This data will then inform investors whether an asset is undervalued or overvalued in the current marketplace.
By contrast, sentiment analysis involves an investigation of the current market sentiment, and the trading tendencies and biases of investors. This gauging of sentiments can be a valuable trading indicator, with data being derived from discussions with other traders, reading mainstream media, social media, and market research surveys.
Frequently Asked Questions
Chainlink developers are aiming to solve existing connectivity and interoperability problems with smart contracts. In order to achieve this, developers have created blockchain software that connects with external systems to make it easier for bank and retail payments to use smart contracts and blockchain networks.
Using a Chainlink node requires minimal hardware. Its developers report that this should be possible with just one core and 1GB of RAM, although 2GB may offer superior reliability.
The LINK token is used by the Chainlink project to pay node operators for retrieving data for smart contracts. It is also used for deposits placed by node operators, as required by contract creators.