Chainlink : The 4th Industrial Revolution

30. Sept. 2022

Today H₿ Capital is analyzing LINK based on a (2W) chart 📈

What is ChainLink ?

Chainlink is a decentralized blockchain oracle network built on Ethereum. The network is intended to be used to facilitate the transfer of tamper-proof data from Off-chain sources to On-chain smart contracts.

This solution is important because currently, most smart contracts are “isolated” on the blockchain, which means they can only interact with other contracts on that same blockchain. This limits their usefulness, because in the real world, data doesn’t live on just one blockchain. In order for adoption to truly take hold, different systems need to be able to talk to each other in a seamless and secure way.

Chainlink solves this problem by providing a way for smart contracts to access data from off-chain sources. This data can be anything from cryptocurrency prices to weather data or even individual identity information. In 2021 Chainlink has signed Eric Schmidt, Google former CEO, as a strategic advisor.

Recently, the Interbank messaging system "SWIFT" has partnered with price oracle provider Chainlink to work on a proof-of-concept (PoC) project which would allow traditional finance firms the ability to transact across blockchain networks. To fully understand the extent of this partnership, remember that SWIFT is the most widely used interbank communication platform for cross-border payments. In particular, it connects more than 11,000 banks around the world and records an average of more than 40 million daily transactions (are you bullish now ?).


Technical Analysis

What we can see :

- LINK made a complete Elliott Cycle started in June 2018 with the first leg of the impulsive wave (1,2,3,4,5)
- Back in may 2021, following the bitcoin crash, Link started its " A B C" corrective wave movement in a "regular flat" structure (3,3,5)
- By using Fibonacci retracements from the beginning of wave 1 (0,16$) to the top of wave 5 (52$) we can see that prices have stabilized on the 0,886 fib level (which generally indicates a potential bottom).

Reasons to be bullish :

- The spreads (long / short) are very low
- Prices closed above the Tenkan and seem to hold it
- Prices break the first downtrend line
- MACD seems ready to initiate a bullish crossing
- The slow stochastic wants to leave the oversold region

So regarding all of the above informations, it seems that Link is ready to start a new Elliot cycle (1,2,3,4,5 / ABC)


Two scenarios we can expect :


Case #1 : Bulls

- Prices take support on the Tenkan and break with conviction the 10$ area where we have a massive resistance (Kijun + SSB flat alignment)
- RSI closes above level 46,67 / The stochastic closes above the oversold region / MACD crosses bullish

R1 ----> Kijun flat (22$)
R2----> Second downtrend line contact
R3 ----> SSB + Kijun flat alignment : (28$)
R4 ----> ATH (52$)

TP1 ----> 89 $ (1,618 Fib level)
TP2 ----> 142 $ (2.618 Fib level)
TP3 ----> 194 $ (3.618 Fib level)


Case #2 : Bears

- Prices close below the Tenkan and below our first downtrend line.
- RSI fails to break the 46,67 level / Stochastic fails to leave the oversold region / MACD doesn't cross bullish

TP1 ----> 6,14 $ (0,886 Fib level)
TP2 ----> 4,57 $ (Top of the biggest VPVR bar)
TP3 ----> 3,46 $ (VPVR - Point of control)


Good luck traders, may the crypto be with you 🍀

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