LINK USD Price live momentum with interactive analytical tools to study chart patterns. The chart references the Chainlink token LINK USD price live from the Coinbase exchange.
About Chainlink (LINK):
Blockchains are highly secure and reliable networks for value exchange but lack the functionality to natively fetch external data or send data to off-chain systems in a manner that retains end-to-end tamper resistance.
Chainlink (LINK) connects smart contracts to the real world: Through the use of secure oracles, Chainlink extends the functionality of blockchains by connecting smart contracts to real-world data, events, payments, and more in a highly tamper-resistant and reliable manner.
Decentralized oracle networks of Chainlink are widely in use by Defi (decentralized finance) protocols such as yearn.finance, AAVE, etc to secure price feeds. Chainlink oracles are also used by Google cloud data warehouses.
Helpful technical indicators to analyze LINK USD price movement:
Technical Analysis through the use of charts or volume helps to forecast future price trends, however, do remember always that analysis can’t make absolute predictions about the future. Therefore, trade with caution.
The following are some of the technical indicators which could be useful for anticipating the most likely Chainlink (LINK) USD price movement.
Moving average convergence divergence (MACD)
MACD is calculated by subtracting the 26-period Exponential Moving Average (EMA) from the 12-period EMA. The result of that calculation is the MACD line. A nine-day EMA of the MACD called the “signal line”, is then plotted. Signal line together with MACD line functions as a trigger for Chainlink (LINK) buy and sell.
Traders may buy the Chainlink (LINK) when the MACD crosses above its signal line (orange line) and Sell, or short, the Chainlink (LINK) when the MACD (blue line) crosses below the signal line.
Another MACD strategy is to look at which side the MACD lines are. Either, above zero for a sustained period of time, and the trend is likely up, or below zero for a sustained period of time, and the trend is likely down. Potential buy signals occur when the MACD moves above zero, and potential sell signals when it crosses below zero.
Relative Strength Index (RSI)
RSI is an indicator that evaluates overbought or oversold conditions in the price of an asset. The RSI is a line graph that moves between two extremes and has a reading from 0 to 100.
Traditional usage of the RSI is that
– Values of 70 or above indicate that an asset is becoming overbought. It signals a trend reversal or correction in the Chainlink (LINK) USD price.
– An RSI reading of 30 or below indicates an oversold or undervalued condition.
Check Moving Average (MA) Of LINK USD Price
MA is the average of the closing USD price of an asset – Chainlink (LINK) over a given number of periods. There are two basic signals in relation to the moving average:
- If the price is above the X day SMA, this signals a bullish movement.
- If the price is below the X day SMA this signals a bearish movement.
The 200-day simple moving average is one of the most-watched activities in the price charts by mostly all experienced traders.
LINK USD Price MA(50,200) Crossovers
Another important signal that these moving averages send is a crossover between the 50-day and the 200-day moving averages.
- Essentially, a bullish crossover (the 50-day MA crosses above the 200-day MA) is called a golden cross. It signals that a new bullish Chainlink (LINK) price trend is starting.
- A bearish crossover (where the 50-day MA crosses below the 200-day MA) is known as the death cross. This is a sign that a bear market may be starting.
On balance volume (OBV)
OBV is another technical trading momentum indicator that uses volume flow to predict changes in the asset price. Ideally, the volume should confirm trends. A rising price should be accompanied by a rising OBV and a falling price should be accompanied by a falling OBV.
- OBV is rising and the price isn’t, the price is likely to follow the OBV and start rising.
- The LINK USD price is rising and OBV is flat-lining or falling, the price may be near the top.
- The LINK USD price is falling and OBV is flat-lining or rising, the price could be nearing a bottom.
Chart Patterns
- Head and Shoulders
- Cup and Handle (bullish)
- Triangles (Symmetrical, Ascending (usually bullish) and Descending)
- Double tops and bottom [M (bearish) and W (bullish)]
- Triple Tops (bearish) & Bottoms (bullish)
