The Link marines are on the backfoot after last week’s flash crash to $7 pushed investors towards a risk-off stance.
The cryptocurrency trades just under a pivotal $12-$13 order block, signaling that the market wipe might not be over yet.
Chainlink entered a sellers’ market on Dec. 23 as the altcoin succumbed to industry-wide bearish sentiment following the US SEC filing against XRP. The revelation sent ripples across the entire industry given the cryptocurrency’s high ranking position in market cap terms ($10.3B per data from CoinGecko).
However, Link Marines seemed unfazed by the industry trauma, as single-digit Chainlink prices quickly turned into double digits.
Pivotal Order Block
At the time of publishing, LINK trades at $11.27 as the market attempts to find a directional bias. The crypto trades just under a pivotal order block just outside an ascending channel delineated in a prior report.
Bulls would like nothing more than to reclaim the order block and the channel, where Link would be priced above $13. This would in turn open the flood-gates to re-testing the local top ($15.7) last seen on Nov. 24.
On the flipside, a clear rejection from the pivotal order block opens the door to retesting the $7 floor. At press time, LINK is sliding into bearish territory, risking accelerating sell-side action back towards single-digits.
Will the Link Marines show up in time to scoop up the flash sale?
The decentralised oracle provider’s co-founder, Sergey Nazarov, revealed to media sources that the network will focus on security and reliability in order to scale to tens of billions of dollars in value.
The oracle network, which enables smart contracts to access off-chain data feeds, web APIs, and legacy finance streams, is banking on being the go-to verified data provider in the blockchain space for 2021.
Following various flash loan cyber attacks, Sergey is convinced that the only way to guard against DeFi threats is to implement an oracle service like Chainlink. Since data is pulled from hundreds of exchanges instead of one, this mitigates the prospect of nefarious flash loan and arbitrage attacks.
For perspective, in the last few months, Harvest Finance lost $34 million, Cheese Bank lost $3.3 million; Akropolis suffered a $2 million loss; Value DeFi lost $6 million; Pickle Finance lost $20 million; and Warp Finance lost $8 million.
The ball is in your court, Link Marines.