• Chainlink is a blockchain technology oracle network for smart contracts

• Its original LINK token has increased by 13% in the past week

• Tokens show a strong upward mentality, but the momentum is still sluggish

Chainlink LINK/USD is the 23rd largest encryption asset, with a total market value of $3.5 billion. It is called the more secure and convenient infrastructure in the field of data encryption blockchain.

According to its website, the website is an oracle network of blockchain technology. It provides tamper proof typing, export and measurement to strengthen high-end smart contracts in all blockchains. Chainlink can also give Internet money making opportunities through chip rewards.

Although the cryptocurrency market continues to adjust, LINK still made great profits. In the past 24 hours, its original token LINK rose 4.51%, with a weekly increase of 13.35%. Similarly, the daily turnover of this token has increased by 76% to $369 million.

The underlying reasons for face profit are not clear. However, the recovery of DeFi market may be partly due to this. MakerDAO and Lido, the top DeFi new projects, rose by 1% and 6% respectively in one week. As a blockchain to improve the strength of smart contracts, Chainlink is of strategic significance.

Its technical market prospect shows that LINK token is on the rise, but the RSI momentum indicator value is just the opposite.

LINK showed strong momentum

From: TradeView

At this stage, LINK is worth 7.15 dollars. According to the daily curve above, the token is close to the friction resistance of $7.4, which is also the level of friction resistance in time. Since the support point of US $6 was detected on August 29, this trend has recovered steadily.

In addition, the trend tracking indicator value MACD is emerald green. It flipped over the power cord from bottom to top. However, RSI is at neutral 50. Chainlink must attract more customers to gain sufficient driving force to eliminate the pressure level of $7.4.

Summarise

The current level is not a perfect buying channel. Shareholders should wait until LINK eliminates the next pressure level. They should also be concerned about the positive change of momentum indicators, so that there is still a chance to enter.