Popular altcoin Chainlink (LINK) has seen a significant increase in bullish momentum currently leading the cryptocurrency market. Still, multiple indicators suggest that LINK may experience a short correction if it enters the $10 zone.
Will Altcoin reach double-digit prices?
Chainlink has surpassed the top 10 cryptocurrencies by market cap, up more than 6 percent since the start of the trading session on Friday. LINK is currently changing hands at $9.40. So, pretty close to $10. According to analyst Nathan Batchelor, as the upward pressure continues to increase, the token seems to have more room to rise. The development of a descending triangle on the daily chart indicates that Chainlink could rise another 11 percent before the uptrend wears off.
The Y-axis of this technical formation predicts a target of $10.60 for LINK as it surpassed the $7.30 resistance level on July 29. While the rest of the cryptocurrency market is showing signs of weakness, Chainlink appears to be able to reach its technical upside potential.
Is there a supply barrier ahead?
Still, IntoTheBlock’s “money in/out” model of price shows a tough supply barrier ahead. About 3,300 addresses have previously purchased approximately 26.4 million LINK for between $9.82 and $10.12. This key area of interest may reject the upside price action as loss-making investors may try to sell some of their holdings.
While LINK has the strength to reach double-digit territory, Chainlink is approaching a key resistance area. The Tom DeMark (TD) Sequential indicator is also likely to present a sell signal on LINK’s daily chart, according to the analyst. The potential bearish pattern could lead to a one to four day candlestick correction before the uptrend resumes.
The latest developments in the Chainlink ecosystem
Meanwhile, there has been a development in the Chainlink ecosystem, to which many investors have contributed, that also concerns the largest altcoin Ethereum. The Chainlink (LINK) protocol has announced that it does not plan to support forked versions of Ethereum (ETH) after Ethereum 2.0, i.e. the merge. As we have also reported as Kriptokoin.com, Chainlink states on its website that this decision includes proof of work forks. Ethereum is currently scheduled to switch to the new proof-of-stake consensus algorithm on September 19. Merge, which will lead to Ethereum 2.0, aims to solve the scalability issues of the network by laying the groundwork for future upgrades, including sharding.
According to Ethereum co-founder Vitalik Buterin, the smart contract platform will eventually be able to facilitate 100,000 transactions per second through layer two solutions once the upgrade is complete. According to Etherscan, at the time of writing, more than 13.23 million ETH worth approximately $22.7 billion have been deposited in the ETH 2.0 deposit agreement. The Chainlink protocol plans to continue working on the Ethereum Blockchain during and after the upgrade.
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