Chainlink (LINK) Price Prediction and Analysis in January 2021
This article discusses Chainlink price prediction for the first month of 2021. If you have been thinking of buying some cryptocurrency, then you are in the right place because we will provide you with some of the information you will need. Just read on to find out our analysis and what other experts think about Chainlink’s performance in January 2021.
Chainlink (LINK) Overview
Chainlink is an oracle blockchain project that seeks to bring smart contracts into real-life application. Founded on the Ethereum blockchain, the native token LINK is an ERC-20 token used mainly to incentivize node operators who keep the network safe. Following its ICO in 2017, 32% of the LINK tokens were allocated to node operators for this purpose.
LINK is not mined, as is the case with Bitcoin. Rather, there are a total of 1 billion LINK that are pre-mined. There are currently 399,509,556 LINK in circulation, having a market cap of $5,519,186,328, the biggest of any DeFi token. It is currently the 10th largest cryptocurrency by market cap and is now trading at $13.85, with $2,480,187,806 worth traded in the last 24 hours.
Chainlink (LINK) Price Prediction: Analysis
Chainlink was by far one of the best performing cryptocurrencies in 2020. The price reached close to $20 during the DeFi boom in August but has since dropped. As a large portion of the altcoin market is down as Bitcoin continues to surge, LINK is not left out of the downward move. After rising along with other altcoins and Bitcoin to reach $15 in November, it has been on a downward move, albeit slowly.
A death cross occurred between the 50 and 20 MA, indicating that the price is on a downward move or has stagnated at least. This means that no positive price movement may occur in the short-term until the trend is reversed. Also, both the 20 and 50 MAs are on their way down and could cross below the 100 MA, further worsening the situation if the trend continues.
The Relative Strength Index (RSI), however, shows that hope for a bounce may be on the way. The RSI is below 36%, which is one of the lowest levels it has reached recently before a bounce. This could, however, be heavily influenced by Bitcoin’s performance in the short-term, which is not slowing down at the moment. As is in the case for the most part, altcoins usually crash when Bitcoin rallies as it is doing now, and if the trend continues, then LINK could reach lower levels or at least maintain the current price and not go up.
Below are key support and resistance levels for LINK traders to note in making trading decisions. This was calculated by Walletinvestor:
- Resistance Level (R3): 12.672;
- Resistance Level (R2): 12.222;
- Resistance Level (R1): 11.594;
- Pivot Point: 11.143;
- Support Level (S1): 10.516;
- Support Level (S2): 10.065;
- Support Level (S3): 9.437.
Developments
The Chainlink team, through the Chainlink Community Grant Program, has awarded a grant to The Link Marine for the creation of a news website known as Chainlink News. In an announcement on its official Twitter handle a few days ago, the team said it was part of its strategies to give back to the Chainlink community.
The Chainlink grant program supports development teams and researchers committed to building a more robust and functional Chainlink network. The new website will be independent, and it will be used for creating, aggregating, and consuming all Chainlink news in the entire crypto ecosystem.
Among other things, the website will translate important content into many languages to help maintain the diversity of the community. They will also help to ensure that the content created by the community is easily visible to the rest of the ecosystem.
Chainlink Price Prediction: Market Opinion for January 2021
The following are market opinions from leading websites on the performance of LINK in January 2021.
Walletinvestor
One of the leading market prediction websites, Walletinvestor, predicts that the highest LINK will reach within the first 14 days will be $15.078, while the lowest during this period will be $13.136.
Tradingbeasts
Tradingbeasts predicts that LINK will start January 2021 at $9.93. It will reach a high of $12.576 and a low of $8.552 before closing the month at $10.061.
Digitalcoinprice
According to this website, LINK will reach an average price of $25.07 in January 2021.
Gov.capital
Gov.capital predicts a price of $11.250 for LINK at the start of January 2021. The minimum price for the month is expected to be $9.5625, while the maximum will be $15.3203, which will also be the closing price for the month.
Chainlink Price Prediction: Verdict
Chainlink seems quite weak right now, and the predictions do not suggest a big leap in January 2021 except that of Digitalcoiprice. However, analysts believe that Chainlink holds some critical use cases that should make LINK much more valuable in the future. However, care should be taken when investing, as it could be a long time before any real gain can be made.
Featured image: blog.bybit.com
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