Chainlink (LINK), on Monday, was selling at approximately $18.80 which indicates a 20 percent increase from the previously recorded low. This growth suggests that the selling pressure is reducing.
LINK’S long-term prospects holders are governed by numerous reasons. Chainlink, the largest oracle provider in the crypto industry, offers essential data services to leading providers in the DeFi space like AAVE and Compound.
Through its Cross-Chain Interoperability Protocol (CCIP), Chainlink is further venturing into tokenization of real-world assets beyond DeFi. This network allows for communication and transfer of tokens across blockchains, thus, promoting interoperability.
These strategic alliances serve to reinforce Chainlink’s posture. The project works with Swift, a payments network serving payment deals in the range of trillions of dollars, alongside partnerships with financial institutions like UBS, Coinbase, and Emirates NBD.
This demonstrates how Chainlink is increasingly becoming a bridge between traditional finance and blockchain.
Chainlink’s staking services are in greater demand with more than 40.87 million LINK tokens staked, accumulating an annual yield of 4.32 percent. This suggests that the investors are not selling , rather accumulating and puts them in a more favorable position. A new catalyst might take LINK’s price further up. According to Coinglass data, exchange balances have been falling, with only 140 million LINK tokens in circulation, a drop from 150 million in December.
LINK reached a high of $31 in December but fell to $16 last week from a technical standpoint.
The support at this level is strong due to it aligning with the 61.8% Fibonacci retracement level and the 200-day EMA. The market was already showing signs of stalling from pushing the price lower, which further enforces this level as a reasonable floor.
Moreover, LINK is forming a continuation signal for a bull flag pattern which it is likely to complete soon. LINK is also nearing another resistance level of $19.12 which was last seen in May 2023. If it breaks out above this level, LINK will likely move toward its next major resistance at $25.60, which is approximately a increase of 35% from where prices are now.
Given its strong fundamentals, strategic partnerships, and bullish technical indicators, Chainlink seems to be gearing up for a potential price surge in the near future.
