For the past three weeks, the Chainlink price has jumped more than 98%, hinting at a bullish outcome. At the time of writing, LINK was up 6.10% at $26.465. Its total market capitalization stands at $11.9 billion. LINK ranks as the 15th largest digital asset, sandwiching it between Binance USD and Internet Computer.
Despite its enthusiasm in the crypto market, LINK’s rally has eased and is in a massive consolidation. According to analysts, with the exhaustion in Bitcoin’s price and most altcoins, LINK might face a minor retracement. Bitcoin’s up-run eased after setting a swing-high at $46,800.
Chainlink launched data oracles on Arbitrum One earlier on Friday. Arbitrum is a layer-two Ethereum scaling solution developed by Offchain Labs. According to the team, this will increase the efficiency of transactions on Ethereum and reduce the costs of transactions.
Developers building on Arbitrum One will be allowed to access financial markets data directly on-chain. Therefore, decentralized exchanges, algorithmic stablecoins, and other advanced decentralized finance (DeFi) products on the network will have enhanced functionality.
While this is just one step of the recent integration, Chainlink also plans to launch its Verifiable Random Function (VRF) on Arbitrum One. The launch will help with on-chain dApps, gaming, and NFTs. Chainlink’s Proof of Reserve service will also launch on Arbitrum One, enabling the auditing of collateralized assets.
Unlike most digital assets, analysts are not so optimistic about Chainlink. Most analysts project a reverse in its price.
The Chainlink price is trading 50% below its highest level this year in May. It hit an intraday low of $24.715, below the 200-day moving average, reinforcing a bearish view. However, it bounced back to an intraday high of $26.885.
On the daily chart, it is trading above the 50, 100, and 200-day moving averages, hinting at a bullish outcome.
Therefore, bulls need to gather momentum to push the price past the resistance at $28.00. However, a slip below the 200-day EMA could invalidate this outlook.