Chainlink confirms its interest in the NFT market, thanks to…
Chain link [LINK] expanded its scope rapidly in the last years of its existence as the need for its services became more apparent. The blockchain network revealed that it aims to maintain the momentum going forward during this year’s SmartCon convention.
Chainlink confirmed its interest in the NFT market which is among the fast developing Web3 segments. The blockchain network announced as part of its product keynote that it would provide NFT floor prices to NFT users.
Coinbase and Cryptex Finance will be among the first partners to leverage Chainlink’s oracle data for NFT price feeds.
.@CoinbaseCloud has partnered with Chainlink Labs to launch NFT Floor Pricing Feeds, a collection of #Chainlink Data feeds tracking the minimum prices for the top 10 NFT collections. pic.twitter.com/TzuQ7IKYOm
— Chainlink (@chainlink) 29 September 2022
In the same vein as price feeds, Chainlink confirmed a partnership with CF Benchmarks. The partnership will facilitate the rollout of a Bitcoin interest rate benchmark called the CF Bitcoin Interest Rate Curve (CF BIRC) for a range of securities.
The upcoming development will be added to the growing list of Chainlink services. Together, these will build up several use cases and tools for ChainLink’s LINK token.
The latter was trading at $7.52 at press time, trading 3.2% lower than its September 30 price. Furthermore, the September 30 price was at $7.69 after the altcoin witnessed a 9.65% retracement from the weekly peak.
Source: TradingView
The pullback occurred after LINK retested its 0.236 Fibonacci level towards the middle of the week. An unsurprising result after the 30% upside it achieved from last week’s low.
The price failed to cross above the same Fibonacci level in the previous two attempts earlier in September. This confirmed that LINK’s lower range gained relative strength during the month.
Its realized cap also more than doubled in the past four weeks from as low as 7.23 million to as high as 18.22 million.
It regressed slightly to 17.52 million on September 30, which was about 0.56% of LINK’s circulating supply.
Source: Sentiment
The realized limit indicated a higher realized value for LINK since the last time they were moved.
The Average Dollar Invested Age (MDIA) metric also recorded a rebound after a sharp crash in mid-September. This observation confirmed that investors have been accumulating over the past two weeks.
Source: Sentiment
A footprint of short term profit taking
Well, LINK’s price action indicates a shift towards short-term profits after each short period of accumulation.
However, as of September 30, LINK’s Relative Strength Index (RSI) grew significantly over the past four weeks, and this was observed as higher RSI lows.
LINK was still trading below its August highs although relative strength got a boost. This could be a sign of more near-term upside to come, in which case we should expect LINK to overcome the current resistance level.
Source: TradingView
In conclusion, LINK is still relatively close to its current lows in 2022. Nevertheless, there may be some risks ahead that could trigger some price slippage.
The other side of the coin looks favorable for the bulls, especially if market conditions permit.
