Chainlink (LINK) Poised for Bull Run in 2023 with New Oracles

14. Januar 2023

• Chainlink has had a mediocre performance over the past few months and has slipped to 22nd place in market capitalization.
• The LINK price has formed a bullish divergence with the RSI on a weekly basis, which could signal the end of the prolonged downtrend.
• The 4-hour chart is showing a bearish divergence, indicating that the momentum might be slowing.

The past few months have been difficult for the price of Chainlink (LINK). After reaching heights of being one of the top 10 cryptocurrencies by market capitalization, LINK has since slipped to 22nd place. Despite this, there might be a bullish outlook in 2023 as Chainlink relies on strong fundamentals.

Analysing the weekly chart reveals an extremely bullish occurrence. The chart shows that the LINK price has formed a bullish divergence with the RSI. This is shown by the fact that the price has recently fallen to new local lows, while the RSI is not making a new low. This suggests that the bears are losing power and that the LINK bulls are ready to control the market again. Ultimately, the bullish divergence could signal the end of the prolonged downtrend.

However, in the short term, there could be another drawdown for LINK. The 4-hour chart is displaying a bearish divergence, as the price is making new local highs while RSI is trending down, making new lower lows. Although the market is taking a bullish stance on Chainlink, the discrepancy means that momentum is slowing.

A bullish catalyst in 2023 for Chainlink might be the introduction of low-latency pull-based oracles. Instead of regularly pushing data to the chain based on predefined conditions, the oracle reports will be made available off-chain and added to the chain by users as they are needed. This could give Chainlink the edge over other smart contract platforms and put it in a strong position for the long-term.

In conclusion, the current market conditions suggest that Chainlink is poised to outperform other cryptocurrencies in the coming months. Its bullish divergence and fundamentals could lead to a bullish outlook for LINK in 2023, with the potential of low-latency pull-based oracles providing an additional boost.