Cardano integrates Chainlink, paving the way for developers to build decentralized applications on the Blockchain. However, the popular altcoin appears to be in bearish mode, according to analyst Ali Martinez.
- Cardano is preparing to integrate Chainlink’s decentralized oracles.
- ADA maintains weak support as news does not attract new buyers.
- Meanwhile, LINK could be tied for a bearish break before the uptrend resumes.
Input Output recently announced that it will leverage Chainlink’s decentralized oracles to make it easier for developers to access real-world databases. Although the sentiment surrounding the partnership was positive, the native tokens for both projects failed to react.
Cardano and Chainlink join forces!
Cryptocoin. com, Input Output, the developer team behind Cardano, has entered into a new strategic partnership with Chainlink Labs. The goal is to enable developers to seamlessly build smart contracts on top of Cardano. By integrating tamper-proof, high-quality external data with Blockchain, digital agreements can be executed automatically under predefined conditions.
Discussing the update, Input Output CEO Charles Hoskinson said that while making real-world data accessible, oracles are necessary for DeFi applications to develop in Cardano. He added that the firm is “determined to provide developers with the most secure and robust tools to build useful solutions in Cardano” and that integrating Chainlink’s oracles is an “easy choice”.
Meanwhile, Chainlink co-founder Sergey Nazarov stated that developers developing DeFi applications on Cardano can add “plug-and-play” price feds to their smart contracts. Despite the importance of the announcement, both ADA and LINK did not react. According to the analyst, the reaction may be a result of market participants’ concerns about the repercussions of China’s latest pressure on cryptocurrencies.
Cardano and LINK in poor support! Here’s What They Could Be…
Cardano price continues to decline today after suffering significant losses over the weekend. As volatility rises, ADA’s recession could extend before the next big price move. According to the analyst, the most critical levels for the altcoin project to overcome are the $1.90 support and $2.47 resistance.
Further consolidation is likely until both breakouts. However, a daily candlestick near the outside of this trend range will present a significant opportunity to profit. Diving below support will likely open the door for bears to take control and push the price yellow towards $1.56. If the overhead resistance is broken, a retest of $3.10, the all-time high on September 2, could be imminent.
Analyst: Chainlink could test these levels
According to the analyst, Chainlink’s native asset LINK also presents an uncertain outlook as its price has been stuck in an ascending parallel channel since May 2019. Since then, every time LINK has risen to the upper edge of this pattern, it has been rejected and retreated to the lower edge. From this point on, it usually rebounds, which is consistent with the characteristics of a parallel channel.
After the latest rejection from the middle trendline of the channel on Sept. 6, LINK may go further to retest the lower trendline of the channel at around $19. A break of this critical support level could lead to a steep correction to $15 or $8, while a rebound could allow LINK to enter a fresh uptrend towards $100.