This Technical Sets LINK Up to 10% Gains

Through the weekend and into the new week, trading volumes rose as investors returned from the U.S. Thanksgiving holidays. Chainlink price has displayed strength rising as much as 38% over the last 10 days. Nevertheless, the expected post-holiday cheer was absent to support the crypto market as news of protests across China weighed on investor appetite.

Crypto Market Topples on NASDAQ Composite Pullback

The Nasdaq Composite Index ended the day with a 1.58% loss. On Tuesday, the crypto market valuation started with an early high of $793.8 billion before sliding to a later afternoon low of $763.7 billion. Later the same day, the crypto market cap made a brief revisit to the $783 billion mark but slid back to below $800 billion. The bearish end to the day left the market cap at $776.2 billion, down by almost $14 billion (1.75%).

News of BlockFi filing for Chapter 11 Bankruptcy protection further invigorated the bearish sentiment, with the crypto lender attributing its bankruptcy filing to the collapse of FTX and noting, “BlockFi has $256.9 million in cash on hand, which is expected to provide sufficient liquidity to support certain operations during the restructuring process.”

BlockFi also highlighted that while it will focus on recovering all obligations owed, delayed recoveries from FTX should be expected. 

Over the last 24 hours, total liquidations fell back to normal levels together with increased trading volumes. Risk aversion due to the Chinese protests further fueled the liquidations, as did BlockFi’s filing. At the time of this publication, 24-hour liquidations are more than $91.98, up from $39.52 million at the start of the week.

Liquidated trades have also increased since the week started, currently standing at around 34,626 against Monday morning’s 15,088.

For the day ahead, U.S. economic indicators, Fed chatter, and the Nasdaq Index will keep providing direction. Investors should also keep track of the crypto news to keep abreast with the latest updates on FTX-related news, including BlockFi’s Chapter 11 filing.

Chainlink Price Remains Bullish On Positive Fundamentals

Despite the headwinds in the crypto market, Chainlink has sustained a positive trajectory, an action possibly attributed to its strong fundamentals, including being the biggest oracle provider in the blockchain industry. With an oracle, Chainlink developers can easily integrate off-chain data on the Chainlink network. For instance, DeFi builders can easily add crypto price feeds to their ecosystems.

The FTX fall has highlighted the need for a proof-of-reserve (PoR), showing that companies have assets they claim to have within their ecosystem. Chainlink launched its Proof of Reserve product months ago and has since been embraced by leading firms such as Armanino, Trusttoken, BitGo, and Paxos, with many others likely to use Chainlink’s services for trust and integrity development.

Through automated verification, #Chainlink Proof of Reserve helps enable @Poundtoken to increase collateral transparency for its GBP-backed stablecoin while mitigating the risk of infinite mint attacks.

Want to know how? Read the case study ⬇️https://t.co/e2XsX2c163

— Chainlink (@chainlink) November 29, 2022

Another possible reason why Chainlink is holding a positive trajectory is the upcoming launch of Chainlink 2.0 slated for December. Chainlink is committed to becoming a Decentralized Oracle Network (DON). The transition entails Chainlink introducing staking, which is an important concept in the industry.

With staking, people can lock their tokens for a certain period, often a month, and earn returns from it thereafter. The returns normally come from the network fees that the network provides. According to the report, Chainlink will start a trial of this staking in December before the full rollout in 2023.

LINK Bulls Prepare For 10% Gains

On November 25, 2022, the LINK price rose to $7 rising above key resistance levels. The current price of the oracle token stands at $7.49 according to data on CoinGecko, up by 0.9% over the last 24 hours and with a trading volume of $409,592,177. Chainlink currently ranks at #19 with a live market cap of $3,801,516,719 on CoinMarketCap.

On the daily chart, the coin has formed an ascending parallel channel, which is a significantly bullish technical pattern with an upward target set at the upper boundary of the channel. BNB was trading at $7.47 and appeared to be fighting resistance from the middle boundary of the ascending parallel channel at $7.66 as shown on the daily chart (below). 

A close above this level could boost the LINK token 10% higher to tag the upper boundary of the ascending channel around $8.27. 

Strong support is provided by the $7.14 level, where the 100-day and 200-day simple moving averages appear to converge. Additional lines of defense are located at the $7 psychological level where the 50-day SMA aits and the $6.88 support floor. This affirmed the positive outlook as these lines of defense was strong enough to absorb possible overhead pressure that may seek to pull Chainlink price lower.

LINK/USD Chart

The market is opening its volatility, and the LINK price is making a run towards the resistance level at $8.0. If this happens, it will potentially obtain a breakout to the psychological $8.276.

As mentioned earlier, Chainlink price is trading above all moving averages (MA), while the MACD and the Relative Strength Index (RSI) have a continued rising trajectory. The RSI is at 58, indicating that the buyers have taken control of the Chainlink price. 

Additionally, the upward movement of the MACD with the 12-day exponential moving average (EMA) still moving above the 26-day EMA after crossing above it on November 23 suggests that the market still favors the upside. Note that LINK’s upward movement will gain momentum once the MACD crosses the zero line into the positive region. 

However, things could go awry if Chainlink price produces a daily candlestick close below the $7.37 support line, embraced by the lower boundary of the prevailing chart pattern. In this case, the price would tumble toward the $7.0 and $7.16 support zone, where the moving averages lie. Market participants could expect the LINK price to consolidate here before starting another leg up. 

Other Promising Projects to Consider

Besides Chainlink, other projects have also demonstrated strong fundamentals. This means that like LINK, they too have the potential to do well and record profit to grow your portfolio. Calvaria and IMPT are two among many, and below is a description of what they are about; their offerings; and the stages in their development.

Calvaria

Calvaria is a blockchain game set in a fantasy universe with three factions battling against each other for control. You can align yourself with one of these factions as a player, at which point you will start collecting cards and creating your deck.

As is the case for other trading card games, players can then conduct player-vs-player (PvP) battles and earn rewards in the process.

The project is unique from other games in the blockchain today, offering different varieties of game modes for players’ convenience. One may opt for the single-player campaign that allows the player to explore the details of Calvaria’s universe. You may also go for the main PvP mode and use the chance to test your skills and win Calvaria’s in-game rewards currency, the eRIA.

Calvaria also has another ERC-20 token – RIA, which provides economic stability to the Calvaria ecosystem. The RIA token is being offered through the project’s crypto presale phase, with a fixed supply of one billion RIA tokens, out of which 30% has been delivered to presale investors. You can buy $RIA with ETH or stablecoins before the price increases. Tokens will be available for claim at launch.

Calvaria’s RIA and eRIA tokens provide the foundation for gamers to earn tokenized rewards if they demonstrate their battling skill. In addition, players will also become full owners of their in-game assets as they are designed as NFTs thereby providing pathways for trading on Calvaria’s in-game marketplace or third-party marketplaces like OpenSea.

So far, the team behind D2T has raised $2.15 million with 7% of tokens current round of the presale sold.

IMPT

IMPT is a new project on the block, promising holders the chance to offset their carbon and earn NFTS, too. According to its whitepaper, the project aims to integrate non-fungible tokens (NFTs) and carbon credits to create a greener form of crypto. As is the case for every other blockchain and blockchain-based network, IMPT will have its native crypto, IMPT token.

IMPT token is structured to help run the system, such that people will be paid out in the IMPT crypto. Other use cases include buying carbon credit NFTs.

From the whitepaper:

Anyone looking to buy IMPT crypto can do so by signing up for a presale. Alternatively, you can wait for it to enter the open market, and purchasing it from an exchange is another. So far, the IMPT team has raised $13 million in the ongoing presale.

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