- Cardano is set to integrate the decentralized Chainlink Oracle.
- ADA maintains weak support as the news did not attract new buyers.
- Meanwhile, LINK may be constrained by a bearish turnaround before resuming its upward trend.
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Input Output recently announced that it will leverage Chainlink’s decentralized oracle to make it easier for developers to access real-world databases. Although feelings surrounding the partnership were positive, The original codes for both projects failed to interact.
Cardano and SHINLINK CHALLENGE
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 high-quality, anti-tamper external data with block chains, digital agreements can be automatically executed under predefined conditions.
Discussing the update, Input Output CEO Charles Hoskinson She said This oracle is essential for DeFi applications to thrive on Cardano because it allows access to real-world data. He added that the company is “committed to providing developers with the safest and most powerful tools.” To build useful solutions on Cardano,” the Chainlink oracle integration was an “easy choice.”
Meanwhile, Chainlink co-founder Sergey Nazarov stated that developers who build DeFi applications on Cardano will be able to “plug and play” it to feed their smart contracts.
Despite the importance of the announcement, both ADA and LINK failed to respond. The lukewarm response may be the result of market participants’ display interest About the recent repercussions of China repression on virtual assets.
ADA and LINK on weak support
The Cardano token price had a quiet day after suffering significant losses over the weekend. The third largest cryptocurrency by market capitalization is trading 0.84% below its daily opening at the time of writing.
While volatility recedes, the ADA slump may extend before the next major price move.
The most important levels for the asset to overcome are the $1.90 support and $2.47 resistance. Until either fracture occurs, further consolidation is likely. However, closing the daily candle outside this trend range may provide a great opportunity for profit.
A dip below the support level is likely to open the gates for the bears to take control of the situation and push prices to $1.56. If the upper resistance is broken, a retest of the all-time high on September 2 at $3.10 may be imminent.
Chainlink’s original asset, LINK, is also offering an ambiguous outlook as its price has been stuck in an upward parallel channel since May 2019.
Every time LINK has risen to the upper boundary of this pattern since then, it is rejected and taken back to the lower edge. From this point, it usually bounces back, which corresponds to the characteristics of the parallel channel.
After the recent rejection from the channel’s middle trendline on Sept 6, LINK could go deeper to retest the channel’s lower trendline at around $19. A breach of this critical support level could lead to a sharp correction to $15 or $8, while a bounce could trigger LINK’s entry into a new uptrend to $100.
Given the uncertainty that Cardano and Chainlink currently represent, it is imperative that traders be patient and wait for the respective support levels to be retested. Only at these levels will the assets indicate whether their upward trends are likely to resume.
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