VIDT Datalink price has gone parabolic but a 46% dive is imminent

The VIDT Datalink price has gone parabolic in the past few days even as other cryptocurrencies have recoiled. The token rose to a multi-month high of $0.82, which was about 697% above the lowest level this year. According to CoinGecko, its total market cap has surged to about $29 million.

What is VIDT Datalink?

VIDT Datalink is a blockchain project that seeks to change the data integrity and validation industry. The platform is made up of three key services: VIDT API, VIDT Private Cloud, and VIDT Smart Contract. 

VIDT works in a relatively simple way. It starts with publishing products like Salesforce, SAP, and other software products. These products are then connected to multiple cloud providers like AWS, IBM Cloud, and Google Cloud. Finally, they are linked nu the VIDT API, which is a cost-effective way to use the data integrity platform.

There are many use cases of VIDT Datalink. For example, it can be used by luxury brands like Rolex and Breitling to secure their timepieces. The companies can secure these timepieces using the platform’s technology and ensure that it cannot be replicated. When its ownership changes, VIDT’s smart contract features will then be moved to the new owner.

Compare the best crypto trading bots.

VIDT also has a lot of usage in the new and growing industry known as non-fungible tokens (NFT). One of the challenges that the industry is facing is how difficult it is to differentiate between genuine and fake products. Creators can use VIDT to ensure that their creations are not counterfeited.

At the core of this platform is the VIDT token. Each time that a publisher timestamps a file or an NFT, one VIDT transaction is made which records all the transactions into several blockchains.

VIDT Datalink price prediction

The daily chart shows that the VIDT price has gone parabolic this week. As it rose, the coin managed to move above the important resistance level at $0.27, which was the lowest point in July 2021. Now, it has moved above the 25-day and 50-day moving averages while oscillators have kept rising. 

I believe that these gains are not sustainable in the short term. As such, there is a high probability that the VIDT token will soon have a sharp pullback. If this happens, the next key support level to watch will be at $0.2736, which is about 46% below the current level.