Nice to see you again, merchant. Today we will look at Chainlink ($LINK). It continued its upward momentum for three consecutive days, reaching a five-week high of $16.3 on May 16. Let’s study recent events and look at the charts.
Wake up $LINK
The $LINK token has risen over 28% from under $12.8 over the past three days.
This impressive achievement follows the successful completion of testing with DTCC and major US banking institutions, indicating a promising future for Chainlink. The test involved companies such as American Trust Custody, Edward Jones, and JPMorgan, focusing on accelerating asset tokenization. The collaboration also includes major players such as Franklin Templeton and BNY Mellon, laying the foundation for substantial progress.
After these tests, Chainlink’s Cross-Chain Interoperability Protocol (CCIP) can now act as a connectivity layer across various blockchains, improving integration with DTCC now and in the future.
Co-founder Sergey Nazarov emphasized the importance of these developments, saying that major market players are integrating blockchain, smart contracts, and oracle networks to solve real-world problems.
Chainlink’s recent price surge has been underpinned by strong LINK whale activity, setting it apart from the broader cryptocurrency market, according to market intelligence firm Santiment.
Santiment shared a chart via the
The Santiment firm notes that things could turn out to be bullish for Chainlink if social dominance remains consistent and FOMO does not take over.
The company stated:
“Chainlink is experiencing a breakout ahead of the market as whales accumulate and social dominance rises.”
Chainlink Price Analysis: Critical Levels to Monitor
The price of LINK fell from a 26-month high of $22.87 on March 11, falling more than 47% to reach a low of $15.46 on April 13. It was a pretty good cryptocurrency dump fest.
Recently, Chainlink price has seen three consecutive bullish trends on the daily chart. $17.0 Supply Zone Effective Immediately resistance. Bulls are now aiming to turn this level into support. On the upside, the key level to watch is the 50% Fibonacci retracement level at $17.42. Moreover, it has since reached $18.7, matching the 81.8% retracement level.
A break above this level could open the way to the 78.6% retracement level and potentially higher levels. The retracement will be completed at $22, a 40% increase from the current price.
All major moving averages are tracking prices, and the Relative Strength Index (RSI) is at 64, close to overbought territory, confirming the dominance of buyers in the market.
Conversely, a nearly overbought RSI suggests that LINK price may soon face downward pressure due to buyer fatigue and profit taking.
The first important support level on the downside is the $16-$15 demand zone where the 50-day EMA, 100-day EMA, and 200-day EMA are located.
additional apply Levels include the 23.6% Fibonacci retracement level at $14.54 and the psychological level at $12. Additional lines of defense may emerge at psychological levels and lows of $12.
This area could represent a near-term bottom for Chainlink.
final thoughts
In conclusion, Chainlink’s recent surge highlights its increasingly significant potential in the blockchain ecosystem. Successful testing with major financial institutions and increased activity by $LINK whales indicate strong confidence in its future prospects. Chainlink is well-positioned for further advancements in asset tokenization and blockchain integration as it continues to innovate and expand its cross-chain interoperability protocols. Investors and market participants should keep an eye on Chainlink as it navigates this exciting phase of its growth and development.
If you like our content, you can support us by signing up for a Bybit account through our referral link. Don’t forget to claim your bonus if you buy/sell or trade cryptocurrencies.
You may also like our other trading blogs, such as our recent blog about Alt Season 2024.
