Friday $LINK Special: History and Future of ChainLink

Highlights:

- LINK entered bull phase in similar way than XRP in early 2017

- Elliot wave structure on the daily

- Bigger Elliot Wave forming?

Before we look at today’s chart and current price levels, we first have to take a few steps back and look at how ChainLink has been performing in since the start of 2018. We will only be focusing on the daily chart, as that is where the readable market structures lies.

Similar to our TRX vs XRP analysis from 6 June, we are able to spot the 4 events that lead up to LINK entering its bull phase. We won’t go over all the step again, but what’s important to notice is that LINK broke resistance on price and momentum in August 2018 by completing an impulse wave.

As we know we are able to measure impulse waves with a Fib tool. This gives us an idea where price can retrace or expand to in the future. Plotting it out and measuring from the low to the high now lays out the retracement levels for the first impulse wave. There is a very high chance that you will almost always be filled near the 50% and 61% levels. Spreading your orders between those two levels normally guarantees a good entry to ride the next impulse wave.

LINK/BTC chart provided by Tradingview

Moving forward we are able to see that LINK managed to reach the buying box, and some order would have been filled if we had spread orders between the top and bottom of the box.

LINK/BTC chart provided by Tradingview

What we now see forming is the start of an Elliott wave structure. So far we have wave 1 and wave 2, and since price bounced off the box, indicated that wave 3 has started. As we know, a rule of Elliott Wave is that wave 3 cannot be shorter than wave 1 in length, and for us to know what levels might be reached during this impulse wave, we now need to swap around the fib tool and measure from high to low to see the possible expansions. This Fib extensions tell us that an expansion to 161% fib would take LINK to 7112 sats, and possibly to the 261% near 10000 sats.

LINK/BTC chart provided by Tradingview

Wave 3 ended up pushing through the 161% fib, and made a move all the way up to the 261% fib extension, reaching a high of 9990 sats. Now we know wave 4 cannot retrace deeper than the dop of wave 1, so playing it safe and putting an entry box between the 127% and 100% fib lines, normally guarantees a good entry for the final impulse wave to come.

LINK/BTC chart provided by Tradingview

Again moving forward we are able to see wave 4 retracing perfectly to the buy box, and respecting the top of wave 1 by not penetrating it, before moving on to complete the final impulse wave. Usually, wave 5 is the largest wave in the set and can expand to highest expansion possible, the 423% fib line.

LINK/BTC chart provided by Tradingview

Moving forward for the last time, to now see the complete Elliot wave structure, we can see that LINK managed to expand all the way up to the final Fib line, reaching a high of 15800 sats. Since the wave structure was complete, LINK then performed an ABC correction, before returning to upside action.

LINK/BTC chart provided by Tradingview

Larger Elliot Wave forming?
With Elliott Wave theory, we know it is possible to have waves within waves, and now zooming out to see current structure on a weekly chart, we can spot the possibility of a larger Elliott Wave structure forming. Again using our Fib tool and measuring the first impulse wave lays out possible future expansion levels. We can already see that wave 1 and wave 2 has completed, with wave 2 retracing into the general buy box between 50% and 61% fib lines, before starting wave 3.

We are now able to plot out the possible Elliot Wave structure, assuming LINK can follow the same structure on the weekly, as it did on the daily. Seeing that most alts are starting to rise, could indicate the start of altcoin season. If that is the case, then LINK can expect a nice Bull run that lies ahead.

RSI is also on our side, with it being above 50 and also pointing up on the weekly, indicating strong bullishness. Our first target for this wave will be at the 261% extension, near 37600 sats. Our main target for the entire cycle is at the 423% extension, near 59400 sats.

LINK/BTC chart provided by Tradingview

4 Likes

Thanks for sharing.

The LINK chart is bullish and the FA is even better.

LINK can lead charge just like ETH did in 2017.

The front runner of oracles and being the key ingredient for smart contract execution will increase the potential of real world adoption. The speculative value of this alone is monstrous imo.

Think we are at the end of the stealth phase heading into the awareness phase.

DYOR, get a bag and hodl.

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I did that a couple months back my friend,I think you are spot on with your words.

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So who going going to sell this pump? Kind of tempted to…

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Not sure if excellent TA or self fulfilling prophecy from followers. :unsure: I didn’t buy any Link. Fuuuuu!!!

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Glad I hodled this one,just converted some of it into ETH and some in XMR and let the original investment ride

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Nice lol. Personally hodling this one for the long term. This is my NEO at $3 and OMG at .40 bag.

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best pre pump call in a long time, i didnt buy in but on a pullback I might start trading in shitcoins like ELA taking the loss and moving into link

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Do it man,this one is a keeper

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A Link in Google’s Chain? Chainlink Surges 71% on Cloud Oracle News

June 13, 2019 Greg Thomson Altcoins, Cryptocurrencies, Fundamental Analysis

The decentralized oracle service, Chainlink, gained 71% in a flash spike on Thursday, fresh off reports that Google had “adopted” the blockchain project.

The truth is slightly less than the hype suggests, however it was still enough to pump the value of LINK tokens, and bodes well for the future of the blockchain space as a whole.

Google Is Testing with Blockchain Oracles

Thursday’s development report details Google’s experimental tinkerings with Ethereum – specifically testing how its dApps can interact with Google Cloud.

Chainlink appears to be one way of fostering that interaction, with its oracle system acting as the literal link in the chain between Google and Ethereum. As summed up by Google, the purpose of Thursday’s bombshell post was to:

“…demonstrate how a specific smart contract platform (Ethereum) can interoperate with our enterprise cloud data warehouse ( BigQuery ) via oracle middleware (Chainlink).”

Getting the three platforms to interact with each other isn’t the hard part. The goal is to create an automated system that can do everything on-chain, and by itself. This is why an oracle is needed.

With an oracle system in place, the Ethereum smart contracts can be updated automatically based on confirmed data coming down the blockchain. Those smart contracts may be tied to any number of functions, as they interact with the data housed on Google Cloud. Explained by Google:

“At a high level, Ethereum Dapps (i.e. smart contract applications) request data from Chainlink, which in turn retrieves data from a web service built with Google App Engine and BigQuery.”

Spurring Development?

Google notes that this system has the benefits of reducing inefficiencies, and even of opening up new use cases. From the post:

“This technique can be used to reduce inefficiencies… and in some cases add entirely new capabilities (hedging use case) to Ethereum smart contracts, enabling new on-chain business models to emerge (prediction markets use case).”

The hope is that Google’s successful demonstration of the Cloud-Oracle-App triumvirate will spur development, and stretch smart contract and cloud-based systems to their full potential. According to Google:

“We anticipate that this interoperability technique will lead developers to create hybrid applications that take the best of what smart contract platforms and cloud platforms have to offer.”

A boon for Chainlink, no doubt. But also a positive sign for the growing connections being made on a technological level between blockchain and big business.

Chainlink Price – LINK/USD

From the daily low of $1.13, the value of LINK tokens surged to $1.94 within the space of a couple of hours. That’s 71% gains in a flash, although the pullback carried the price back down to $1.79 at time of writing.

Binance proved to be the main hub for LINK trades when the price exploded, with over $160 million of LINK’s $250 million changeover coming from the Malta-based exchange.

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ethereum smart contracts with data in and data out of trusted oracles is going to be a big big thing, if these guys are leading that charge and proving they can sign the deals to be a clear leader in that, the coin eventually moons…

https://chain.link/providers/ - there are so many applications for this its crazy

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