The latest crypto market crash has highlighted the need to focus on blockchain projects that offer real-world utility. LINK is among the few cryptocurrencies in this category thanks to a business model of providing on-chain oracle services. But the question is, should you really invest in LINK?
A recent technical conference on ChainLink provides valuable insights into the above question. One of the highlights of the conversation was Chainlink’s role in providing Oracle services. This will be an essential element to enable the tokenization of assets on blockchains. Its services are the blockchain decentralized equivalent of Amazon Web Services (AWS).
Invenium is one of the companies currently using ChainLink’s technology to provide real-time tracking of digital assets on blockchain networks. The demand for such services will increase the need for oracle services. Chainlink happens to be one of the best crypto projects operating in this particular niche, especially as asset tokenization becomes mainstream.
How can LINK take advantage of the growth of this segment?
The growth of LINK is directly related to the level of demand for Chainlink’s oracle services since it is used to pay for access to oracle data. Growing demand for real-world asset tokenization is expected to contribute to LINK’s organic growth. Such a result will contribute to a positive price development in the medium and long term.
LINK is currently trying to recover from a strong bearish performance during the last stock market crash. Dropped as low as $5.3 and rebounded from a long-term support line. This also means that it has held its price within a long-term descending price channel backed by support and resistance.
LINK’s rise over the past five days is due to reduced selling after it entered the oversold zone of the RSI. The IMF showed a slight accumulation, but appeared to be struggling with low buying pressure. On-chain metrics echo similar sentiments.
The supply held by major exchange addresses increased from May 5 and peaked on May 12, before registering a slight decline. This reflects the amount of LINK transferred to exchange wallets through FUD-induced selling. At the same time, the supply held by major OTC addresses has dwindled since May 5 as investors sold their LINK holdings. However, this metric did not register an increase, reflecting the low purchase volume.
Notably, buying pressure may be about to return. The whale trade count metric for deals worth more than $1 million has seen significant activity over the past 24 hours. The current price outlook for LINK may be shrouded in uncertainty, but the long-term outlook favors the bulls.