The LINK token, the native cryptocurrency of Chainlink, the decentralized oracle network built on the Ethereum blockchain, has experienced a remarkable surge of over 12% in its weekly chart. This surge in value has been attributed to the network’s recent partnerships with traditional financial institutions, signaling a growing interest in decentralized finance (DeFi).
As of the latest data, the LINK token climbed to a weekly high of $6.97 from its previous position at $5.97. This substantial increase in value has not only caught the attention of investors but also altered the market structure in a bullish direction. If the current bullish momentum persists, experts believe the next significant resistance level to overcome is $7. However, it is essential to note that a decline below $6.20 could invalidate the long-term bullish scenario for LINK.
Prominent crypto analyst Rekt Capital has expressed optimism about the future of the LINK token. According to Rekt Capital, the decentralized Oracle network’s recent performance indicates its potential for further recovery. After experiencing a price surge in July, LINK held its range-high resistance.
Despite a recent low of $5.76 on September 11th, LINK remained within the asset’s range-low support. Since then, the token has rebounded, and Rekt Capital predicts that LINK “should be able to revisit the range-high resistance” at approximately $8.186, representing an additional 20.5% increase if achieved.
Chainlink (LINK) Driving Factor
The recent rally in LINK’s price can be attributed to the growing optimism surrounding the network’s strategic partnership with the interbank messaging system SWIFT, aimed at scaling tokenized asset adoption in the financial sector. On a recent Monday, Chainlink’s co-founder, Sergey Nazarov, took the stage at SWIFT’s global financial services networking event, Sibos.
During this event, Nazarov, alongside Nigel Dobson, the banking services lead at the Australia and New Zealand Banking Group (ANZ), delved into the concept of cross-chain settlement using Chainlink’s Cross-Chain Interoperability Protocol (CCIP).
The collaboration between Chainlink and the Depository Trust and Clearing Corporation (DTCC), a prominent player in U.S. market trading processing, was first announced in June as part of Swift’s Blockchain interoperability project. This initiative aims to leverage Chainlink’s CCIP to enable seamless interoperability between source and destination blockchains.
In a significant development, ANZ utilized Chainlink’s CCIP to successfully complete a cross-chain purchase of tokenized assets involving A$DC, an ANZ-issued stablecoin pegged to the Australian dollar.
In response to this achievement, Chainlink emphasized that this advancement builds upon the lessons learned from the recent Swift blockchain interoperability initiative. It further demonstrates how financial institutions can harness CCIP to facilitate cross-chain transactions across public and private blockchains.
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