Key Insights
- Chainlink price has formed a golden cross pattern on the daily chart.
- The volume and the futures open interest have jumped this week.
- The total value secured (TVS) in the network has continued rising.
Chainlink price has made a strong comeback in the past few months and is now trading at its highest level since January this year. LINK token peaked at $13.68, up by 96% from its lowest level this year. This surge has brought its market capitalization to $9.9 billion. This rally may continue in the near future as the coin has formed a golden cross pattern.
Chainlink Price Technical Analysis Points to More Gains
The daily chart shows that the LINK token has rebounded in the past few months, and this rally may continue. This rally happened after the coin formed a double-bottom pattern at $7.15, its lowest level in February and June this year. A double-bottom is one of the most common bullish reversal patterns in technical analysis.
The coin has moved above the important resistance level of $10.87, the double-bottom’s neckline, which was its highest point on May 10. Most notably, after that breakout, the coin has already retested the $10.87 support level. That is a break-and-retest pattern, a common continuation sign.
The coin has formed a golden cross pattern as the 50- and 200-day Exponential Moving Averages (EMAs) crossed. This pattern usually signals a strong continuation in the market.
The Relative Strength Index (RSI) and the MACD indicators have continued rising. Therefore, the most likely scenario is that it continues to rise as bulls target the key resistance level of $15, its highest level in December last year. A move above that price will point to further gains, potentially to $20.
On the other hand, a drop below the key support level of $12 will invalidate the bullish outlook and signal further downside.
Chainlink Token is Benefiting From Robust Demand
Third-party data shows that demand for Chainlink, the biggest oracle network, is growing substantially. According to CoinMarketCap, the volume of LINK tokens jumped by 110% in the last 24 hours to over $763 million. This surge makes it one of the most actively traded coins today.
The same trend is happening in the futures market, where the open interest has jumped to $764 million, the highest level since October last year. This surge is happening at a time when the weighted funding rate has remained in the green in the past few weeks. A positive figure is usually a sign that investors expect the price to remain in a bull run.
This growing demand has led to a significant decline in the volume of LINK tokens in exchanges. It has dropped to 115 million coins, its lowest level in months and well below last year’s high of 138 million coins.
Chainlink is Benefiting From RWA Growth
LINK price has jumped as its fundamentals continue improving. DeFi Llama data shows that the total value secured (TVS) in its platform has jumped to over $40 billion from the year-to-date low of $27 billion. It has now jumped to the highest level since April.
Chainlink’s network fees have continued to rise over the past few weeks. It surpassed $1.2 million last week. It has made over $11.9 million this quarter, up from $15 million last quarter. This is a sign that the network fees in the current quarter will exceed those earned in the previous one.
Chainlink is benefiting from the ongoing real-world asset (RWA) tokenization growth as the amount in the industry rising to over $43 billion. The network is used by some of the biggest players in the RWA industry. It is also being used to relay US government data.
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