• Chainlink’s price has had a mediocre performance over the past few months, slipping to 22nd place in market capitalization.
• Weekly charts show a bullish divergence, with the price making lower lows while the RSI is not making a new low.
• In 2023, Chainlink may receive a bullish catalyst from its low-latency pull-based oracles.
The cryptocurrency market has been a rollercoaster in the past few months, with prices going up and down in a matter of days. One of the coins that has been affected by the volatility is Chainlink (LINK). Once a top 10 cryptocurrency by market capitalization, LINK has now slipped to 22nd place. Nonetheless, the fundamentals of the coin are still strong, and the technicals are showing a bullish divergence that could take LINK to new heights.
The weekly chart of LINKUSD on TradingView.com shows a bullish divergence. This is shown by the fact that the price has recently fallen to new local lows, while the RSI is not making a new low. This divergence in the market indicates that the bears are losing power and that the LINK bulls are ready to take control. If this trend continues, it could signal the end of the prolonged downtrend that has been affecting LINK.
However, in the short term, the 4-hour chart of LINKUSD is showing a bearish divergence. The discrepancy between the price making new local highs and the RSI trending down and making new lower lows indicates that the momentum is slowing. This could lead to another drawdown for LINK in the short term.
In 2023, Chainlink may receive a bullish catalyst from its low-latency pull-based oracles. Instead of regularly pushing data to the chain based on predefined conditions, the oracle reports will be made available off-chain and added to the chain by users as they are needed. This will enable the blockchain-based smart contracts to process data at a much faster rate, making them more reliable and efficient.
Overall, the fundamentals of Chainlink are still strong and the technicals are showing a bullish divergence. This could signal the end of the prolonged downtrend and take LINK to new heights. In addition, the low-latency pull-based oracles could be a bullish catalyst for LINK in 2023. As such, investors should keep an eye on Chainlink in the coming months and see if the coin manages to outperform other cryptocurrencies.