Chainlink price stabilizes as technicals and fundamentals signal a rebound.
As the recent sell-off subsided, Chainlink was trading at $18.80 on Monday, representing a 20% increase from its lowest level achieved the previous week.
There are a number of factors that could potentially cause the price of LINK to increase over the course of time. Oracle is the most prominent provider of oracle services in the cryptocurrency business.
It provides solutions to significant companies in the decentralized financial industry, including AAVE and Compound. Through the implementation of its cross-chain interoperability protocol, Chainlink has managed to establish itself as a significant participant in the real-world asset tokenization sector.
A secure interoperability network, CCIP enables token transfers and messaging across multiple chains. It is a network that enables secure interoperability. A further point of interest is that Chainlink has established partnerships with major financial services companies.
dditionally, it has relationships with companies such as UBS, Coinbase, and Emirates NBD, in addition to its engagement with Swift, a network that is responsible for the movement of trillions of dollars yearly. It’s possible that a new catalyst will soon cause Chainlink’s price to rise.
In recent weeks, the balances of LINK tokens on exchanges have decreased. According to Coinglass, there are currently 140 million LINK tokens held on exchanges, which is a decrease from the 150 million tokens that were held in December.
The fact that exchange balances are falling is an optimistic indicator since it suggests that investors are keeping the token in their possession. Moreover, it indicates that there is an increasing demand for Chainlink’s staking services.
There are presently around 40.87 million LINK tokens up for staking, which results in a yield of 4.32%. According to the daily chart, LINK reached its highest point of $31 in December before falling to its lowest point of $16 last week.
This bottom occurred at the same time as the 61.8% Fibonacci retracement level and the 200-day Exponential Moving Average, which indicates that there is solid support and that bears are hesitant to short below this level.
In addition, the price of Chainlink has created a bullish flag pattern, which is a well-known formation that indicates continuation. It is now attempting to break above the key resistance level at $19.12, its highest swing in May last year.
Therefore, the token is likely to rebound and retest the next major resistance level at $25.60, the 23.6% retracement level, which is approximately 35% above the current price.
