As a startup, Chainlink solves a significant obstacle that concerns transferring data between blockchains and the real world.
The protocol, whose origins date back to September 2014 – a period when half of the world have not even heard about blockchains and Bitcoin, offered a solution that enables independent data sources to feed information into public ledgers through a decentralized oracle network.
Flash forward to 2020, Chainlink is now part of 315 blockchain projects, including decentralized finance protocols, data providers, blockchain nodes, and whatnot.
#Chainlink ecosystem growth never slows with 29 new October integrations 🔥
Total $LINK integrations 315 – including:
View all here: https://t.co/ZUaUvFgUSd
It should! pic.twitter.com/IdCX65zNYa
— TheLinkMarine 🦆 (@TheLinkMarine1) November 1, 2020
Chainlink’s success is also visible in its market capitalization, which has surged to $4.275 billion from $101 million in just two years. Naturally, the upswing has also pushed the price of LINK, Chainlink’s in-house token, higher; it was recently up by more than 17,000 percent since launch.
But despite Chainlink’s growth as an oracle protocol, the performance of its token remains exposed to the supply-and-demand dynamics. The LINK/USD exchange rate topped at $20.71 in August 2020. The pair later experienced a significant sell-off. The move brought its price down by as much as 64 percent – as of September 23.
LINK’s plunge was a product of a bearish technical setup. As usual, the token bounced back, logging a 79.18 percent recovery. Nevertheless, it remained under bearish pressure as a combination of technical and fundamental signals pointed to an extended downside bias among traders.
Here are three reasons why LINK has more room to fall in the coming sessions.
#1 New Addresses
The first bearish setup for…