Key Insights
- Chainlink price has broken above a significant resistance and is gaining strength to push to new highs.
- The protocol’s recent partnership with Intercontinental Exchange (ICE) has boosted institutional adoption.
- Traders are eyeing $25 as the next major resistance before a push toward $35 and beyond.
This week, the Chainlink price is pushing higher, especially after breaking through a long-term descending trendline. This move has been a significant source of optimism for traders. These traders expect further gains over the long and short terms.
LINK benefits from the general crypto market rally, with Bitcoin and Ethereum’s strength lifting the sentiment across the altcoins.
Chainlink Price Surges on ICE Partnership and Record $93B TVS
Tuesday, August 12, saw Chainlink price surge 10.5% to trade as high as $24.20. Since February, this has stood as its strongest price level, putting it ahead of all other top-20 cryptocurrencies.
The rally came after two major announcements. This includes a strategic data partnership with Intercontinental Exchange (ICE) and a new all-time high in Total Value Secured (TVS).
Chainlink’s collaboration has been a significant source of hype because ICE operates over 300 exchanges worldwide. It also provides financial data across multiple asset classes.
LINK has partnered with ICE to bring foreign exchange and precious metals data on-chain. This integration uses ICE’s Consolidated Feed to enhance Chainlink’s data streams for over 2,000 blockchain applications.
This upgrade means over 2,000 applications, banks, and asset managers can access secure price data directly on the blockchain. This will allow developers to create tokenised assets, automated settlement systems, and other advanced products via accurate market feeds.
The announcement also came alongside Chainlink breaking $93 billion in Total Value Secured across hundreds of DeFi protocols.
Technical Indicators Support Bullish Outlook for Chainlink Price
Chainlink price is trading within a long-term ascending channel and is now closing in on the upper midline. The recent weekly close above $21.68 confirmed a breakout from a consolidation zone. It also turned previous resistance into support.
A double-bottom pattern has also formed on the charts, showing that bearish pressure is easing. Price action has so far moved above the midline of the Gaussian channel. This is a sign that the trend has shifted to bullish territory.
The next significant resistance is near $25.19 according to the Fibonacci retracement tool, and was last tested in March. In other words, a break above this level could trigger a rally toward $27 in the short term.
Beyond this, technical models show a mid-term target between $35 and $36, with a long-term LINK price target. The token could reach $50 if the ongoing strength continues.
Exchange Outflows Show Long-Term Holding
According to analyst Ali, on-chain data shows 2 million LINK tokens were withdrawn from exchanges within 48 hours. Historically, exchange outflows indicate that traders move assets to private wallets for long-term holding.
This trend improves the available supply on trading platforms and can improve the bullishness when buying pressure does increase.
Derivatives market activity has also spiked lately, after the ICE announcement. Data from Coinglass also shows that trading volumes jumped by as much as 33% in a single day to $3.8 billion. On the other hand, open interest reached a fresh $1.4 billion.
Can LINK Reach $50?
Short-term predictions show a possible move towards as high as $26.46 if the bullish strength continues. Over the medium term, analysts expect $31 to $32 to be achievable targets for the Chainlink price.
This is especially if institutional adoption speeds up and DeFi integration continues to deepen. Over the long term, the upper boundary of the current ascending channel works well with the $35 to $36 range.
The market conditions may remain favorable, and LINK holds its current growth rate. If this happens, it is possible to push towards $48 to $50 within the next 12 months.
