Chainlink Surges Past $23, SWIFT Integration and Whale Accumulation Signal Potential Rally to $30
Oracle giant Chainlink (LINK) breaks key resistance levels amid institutional adoption surge and strengthened tokenomics. What's next?
Quick overview
- Chainlink's native token, LINK, has surged over 42% in the past week, currently trading above $23 after breaking key resistance levels.
- Whale accumulation and a new staking mechanism are driving demand, creating a bullish cycle that supports further price increases.
- The partnership with SWIFT positions Chainlink to tap into a multi-trillion dollar market by connecting traditional banking with blockchain technology.
- Analysts suggest LINK is undervalued compared to major cloud infrastructure players, indicating significant growth potential as the digital asset ecosystem expands.
Chainlink LINK/USD is making a big comeback, trading above $23 with a 1.6% gain in the last 24 hours and a huge 42% rise in the last week. The oracle network’s native token has gotten a lot of attention from traders because it has broken through important technical levels and is benefiting from big institutional changes and whale accumulation tendencies.
LINK/USD Technical Breakout Confirms Bullish Momentum Shift
After LINK broke through the $20 weekly resistance zone, which has been a key barrier for years, the technical environment has changed dramatically. Miles Deutscher, a crypto expert, said that this breakthrough is as important as Ethereum’s ETH/USD $4,000 resistance level. He said that there is a lot of room for growth in the future.
LINK is currently over $23, but its next big challenge is around the $24 resistance level, which was a solid barrier during earlier rallies. The Relative Strength Index (RSI) is in the mid-60s range, which means that technical indicators are still supporting the market. This means that there is still potential for the market to go up before it becomes overbought.
The price action has been accompanied by a rise in trading volume, which shows that a lot of people are participating in the market. Analysts say that LINK could quickly advance toward the $30 goal if it can keep up its momentum and close decisively above $24. This price level was last witnessed during the bull market cycle of 2021.
LINK Whale Accumulation and Tokenomics Create Bullish Flywheel
Recent on-chain data shows that whales are buying a lot of LINK tokens. In the past week alone, big investors have bought millions of dollars’ worth of LINK tokens. This buying pressure from institutions is happening at the same time as Chainlink’s staking mechanism, which analysts call a “perpetual, automated buyback mechanism.”
Users lock up LINK tokens to protect the network and earn about 4.32% yield while taking LINK out of circulation, which keeps buying pressure going. This creates a tremendous adoption flywheel: more people using LINK means more money, which means more LINK is bought and locked, which makes the network safer and gives it more resources, which makes it more useful.
Chainlink’s SWIFT Partnership Unlocks Multi-Trillion Dollar Market Opportunity
Chainlink’s connection to SWIFT, the global interbank messaging network that links more than 11,000 banks and financial institutions around the world, is what has made many people feel more positive lately. Chainlink’s Cross-Chain Interoperability Protocol (CCIP) will connect traditional banking and blockchain networks through this partnership.
This cooperation puts Chainlink in the middle of the shift from old banking systems to blockchain technology, which might open up a market worth trillions of dollars. Banks that use SWIFT might soon be able to easily connect to numerous blockchains. This would make settlements faster, asset transfers easier, and payments around the world more efficient.
Sergey Nazarov, one of the co-founders of Chainlink, said that asset tokenization will speed up the transfer of capital across traditional markets, increasing the speed of asset classes like treasuries, stocks, private credit, commercial debt, and real estate.
Infrastructure Valuation Framework Suggests Undervaluation
Analysts are starting to look at Chainlink as an infrastructure investment, comparing it to big players in cloud computing. If Amazon Web Services, Microsoft Azure, and Google Cloud Platform were to be spun off into separate companies, they would be worth between $740 billion and $1 trillion, $510 billion and $690 billion, and $320 billion and $430 billion, respectively.
Analyst Miles Deutscher said, “Chainlink is the basic B2B infrastructure for the whole on-chain economy,” putting the network in the same league as traditional cloud infrastructure for blockchain. This approach argues that LINK may be worth a lot less than it should be because it is an important part of the growing digital asset ecosystem.
Chainlink Price Prediction: Path to $30 and Beyond
With LINK trading above $23 and displaying good technical momentum, it looks like the road to $30 is getting more and more open. Some important things that assist this goal are:
- Short-term catalyst: If the price goes up 6.2% to $25.50, around $61 million in short bets would be at risk of being liquidated.
- Technical progression: If the price breaks through $24 resistance, it will quickly move toward $30.
- Fundamental tailwinds: SWIFT connectivity and more institutions using it keep demand strong.
- Supply dynamics: The staking mechanism takes tokens out of circulation while making money.
Even though LINK has gone up a lot recently, it is still 55% behind its all-time high of $52.88 in May 2021, which means it has a lot of room to grow in value over time. Analysts think that Chainlink’s unique position might help the token reach a new all-time high during the next major bull cycle, as more traditional assets are tokenized and cross-chain communication becomes necessary.
- Check out our free forex signals
- Follow the top economic events on FX Leaders economic calendar
- Trade better, discover more Forex Trading Strategies
- Open a FREE Trading Account
Save