Chainlink remains a vital component of the crypto ecosystem as a decentralized oracle network enabling smart contracts to connect with off-chain data. A recent video from Altcoin Buzz analyzed LINK’s merits and criticisms for those considering investing in 2023.
On the positive side, Chainlink facilitates key infrastructure for Web3 dApps including secure data connectivity and cross-chain interoperability. However, some critique its partial centralization among select nodes. Additionally, the utility of the LINK token itself is debated.
Nonetheless, Chainlink is seen as indispensable and continues maturing. Altcoin Buzz acknowledged LINK’s pivotal role in smart contract functionality and concluded bullishly due to ongoing developments.
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LINK’s Technical Outlook
From a trading perspective, analysts also see a bullish setup developing despite LINK’s prolonged consolidation. The price is currently above the 50-day and 200-day moving averages as the price declines towards $7. Many buyers will hope that these moving averages serve as support for the price, so it keeps moving higher.
Additionally, the Relative Strength Index (RSI) is currently at 57, showing that buyers are still more in control than sellers in the short term. They will be hoping that the price finds support around 50 to avoid a major decline.
A major increase in trading volume will also be required to push the price up at a sustained level. An extended accumulation may propel such an increase. However, analysts remain optimistic about an eventual upside resolution.
Based on an analysis from TradingView, LINK has not been doing so much lately, but many analysts think that it has a bright future. According to the analysis: “When coins sleep & slump they are a little dangerous but LINK has been sleeping for over a year and its holding well. It did look a little dicey in the summer but it has recovered well; hopping above the all important yellow 50 week moving average and maintaining sideways drift within the blue trading range”
Conclusion
With both its indispensable purpose and bullish technical positioning, the overall verdict on LINK in 2023 is decisively positive. Its prolonged consolidation period seems to be setting the stage for an imminent rally as metrics align in LINK’s favor according to analysts.
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