Chainlink 2.0 ambitious vision could propel LINK price to new highs

  • Chainlink released a new whitepaper, Chainlink 2.0, dubbed as the ‘next steps in the evolution of decentralized finance.’
  • The whitepaper details its ambitious vision for Chainlink 2.0 and introduces a new architecture for building hybrid smart contracts.
  • LINK price establishes swing points and begins to range higher, aiming to retest current all-time highs.

Chainlink recently announced its plans for Chainlink 2.0 via a whitepaper that elaborates on the team’s plans on what the future holds for the most widely used oracle in the cryptocurrency ecosystem. On the other hand, the LINK price seems to be gearing up for a move higher.

Redefining decentralized oracles

Chainlink, the pioneer of decentralized oracles, has without a doubt been the most used oracle network in the cryptocurrency space. While Chainlink focuses on securely feeding external data into the blockchain in a reliable manner, the latest whitepaper anticipates creating multiple Decentralized Oracle Networks (DON) that can bi-directionally transfer data and perform off-chain computing.

Put simply, Chainlink 2.0, to an extent, is similar to popular Layer-2 solutions.

The blog states,

Chainlink DONs are anchored to existing blockchains in order to periodically sync the data outputs and state changes computed off-chain, as well as establish guardrails that enforce correct oracle reports and arbitrate off-chain oracle disputes.

Additionally, the DONs will facilitate the creation of hybrid smart contracts that rely on already available on-chain code and merge with the off-chain computations.

All in all, the new proposed system will allow DONs to use a universal, blockchain-agnostic gateway for smart contracts to access off-chain resources and the impacts of this are wide-ranging.

Two significant impacts of Chainlink 2.0

Scaling is perhaps the most crucial byproduct of the proposed system. Due to hybrid smart contracts and off-chain computing, blockchains that are usually constrained due to cost and privacy will achieve scalability due to reduced on-chain loads.

Hence, with Chainlink 2.0, DONs will have low latency and high throughput.

Security will vastly improve due to the introduction of the super-linear staking concept that makes it harder for bad actors to manipulate the data.

LINK price embarks on journey to swing highs

Chainlink price set up a new all-time high at $44.37 and a swing low around the $33.27 level, which marked the start of a potential range-bound move. After tapping the swing lows on April 20, LINK has established a new demand zone that extends from $34.02 to $36.65.

A bounce from this zone could propel the oracle by 20%. Supporting this bullish move would be a potential spike in buying pressure, leading to a decisive close above the 50% Fibonacci retracement level at $38.82.

In this scenario, LINK could surge toward the all-time high at $44.37. However, investors should note that the upward trajectory could stop and slow down around the supply zone that stretches from $42.64 to $43.73.

If the buying pressure persists at the retest of the swing high, the 161.8% and the 200% Fibonacci extension levels at $51.23 and $55.47, respectively, will be the bulls’ next target.

LINK/USDT 12-hour chart

LINK/USDT 12-hour chart

On the flip side, if the sellers push the oracle token to break the demand zone’s lower layer at $34.06, this could signal a weakening buying pressure.

A decisive close below the swing low at $33.27 will invalidate the bullish thesis and start a new downtrend to $30.18.

Information on these pages contains forward-looking statements that involve risks and uncertainties. Markets and instruments profiled on this page are for informational purposes only and should not in any way come across as a recommendation to buy or sell in these assets. You should do your own thorough research before making any investment decisions. FXStreet does not in any way guarantee that this information is free from mistakes, errors, or material misstatements. It also does not guarantee that this information is of a timely nature. Investing in Open Markets involves a great deal of risk, including the loss of all or a portion of your investment, as well as emotional distress. All risks, losses and costs associated with investing, including total loss of principal, are your responsibility. The views and opinions expressed in this article are those of the authors and do not necessarily reflect the official policy or position of FXStreet nor its advertisers. The author will not be held responsible for information that is found at the end of links posted on this page.

If not otherwise explicitly mentioned in the body of the article, at the time of writing, the author has no position in any stock mentioned in this article and no business relationship with any company mentioned. The author has not received compensation for writing this article, other than from FXStreet.

FXStreet and the author do not provide personalized recommendations. The author makes no representations as to the accuracy, completeness, or suitability of this information. FXStreet and the author will not be liable for any errors, omissions or any losses, injuries or damages arising from this information and its display or use. Errors and omissions excepted.

The author and FXStreet are not registered investment advisors and nothing in this article is intended to be investment advice.

Cryptos feed

Latest Crypto News

Latest Crypto News & Analysis

Editors’ Picks

Cardano partners with Chainlink to drive smart contract development for DeFi applications

Cardano recently announced a strategic partnership with decentralized blockchain oracle network Chainlink. The third-generation blockchain is preparing to build smart contracts for decentralized finance (DeFi) applications.

More Cardano news

Huobi to stop servicing Chinese users as China vows strict crackdown on crypto

A few months after the cryptocurrency mining ban in China, the country issued another update last week, reiterating that digital assets are banned and crypto exchanges are prohibited. Shortly after the announcement was revealed, Bitcoin and altcoins plunged.

More Cryptocurrencies news

Ethereum bears contemplate a drop to $2450

ETH price is building up downside pressure while clinging to the 200-SMA support. RSI remains flat below the midline, keeping the sellers cheerful. A drop towards $2450 remains in the offing if the 200-SMA caves in.

More Ethereum News

Polkadot price at make-or-break point

Polkadot price spots a potential symmetric triangle pattern on the 1D chart. RSI stands neutral at 50.00, suggesting a lack of clear directional bias. 21-DMA offers immediate resistance.

More Polkadot News


Bitcoin Weekly Forecast: Markets revert to mean, but BTC price remains indecisive

Bitcoin price shows considerable strength after springing from the recent crashes. Still, it is uncertain whether the current bullish impulse will morph into a new uptrend or lead to a more profound decline.

Read the weekly forecast