Chainlink (LINK) witnessed a 10% surge and showed signs of consolidation on its weekly chart. However, the altcoin struggled to break through key resistance levels over the past week, mirroring the indecision observed in other altcoins amid the broader market sentiment. Notably, LINK experienced minor gains in the last 24 hours.
Technical analysis suggests a favorable outlook for the bulls, as demand and accumulations remained positive, indicating increased buying power. Additionally, trading volume surged by 150% within the past 24 hours.
Nevertheless, the bullish sentiment seems limited to shorter time frames, while higher time frames lean toward bearish sentiment. Currently trading at $6.90, LINK faces strong resistance at $7.
Failure to overcome this immediate hurdle could lead to selling pressure, potentially driving the price below $6.50. The market capitalization of LINK continues to rise, indicating buyer control.
In terms of price predictions, technical indicators lean bullish, but other indicators suggest bearish signals, reflecting mixed sentiments. The Fear & Greed Index currently stands at 20.09, indicating extreme fear in the market.
Over the past 30 days, Chainlink has enjoyed a 30.51% increase, hinting at a potential recovery in the upcoming month. By the end of July, it is anticipated that Chainlink’s value will rise by 114.08% and reach around $14.78.
Technical analysis also points towards a future drop in the 200-day Simple Moving Average (SMA), with a projected price of $6.72 by December’s end. Currently, the Relative Strength Index (RSI) sits at RSIValue, indicating a neutral position for the LINK market.
Chainlink (LINK) Price Driving Factor
Chainlink’s native cryptocurrency, LINK, experienced a significant price surge following the announcement of the Cross-Chain Interoperability Protocol (CCIP) entering the Mainnet Early Access phase.
Chainlink, a renowned Web3 services platform, revealed that CCIP is now operational on Ethereum, Optimism, Polygon, and Avalanche blockchains. Prominent decentralized finance (DeFi) protocols such as Synthetix and Aave have already integrated CCIP to enable cross-chain smart contracts.
CCIP aims to address the challenges faced by DeFi, including cross-chain hacks, by providing a secure and efficient platform for building applications that operate across different blockchains.
Synthetix, a leading DeFi protocol facilitating on-chain derivatives, relies on Chainlink CCIP for its Synth Teleporter feature, enabling seamless liquidity transfers across chains.
Meanwhile, Aave, a lending protocol, integrates CCIP to enhance its cross-chain governance system. CCIP has also attracted the attention of major financial institutions, with Swift and several prominent players in the global banking industry participating in its collaboration.
The ambitious goal of CCIP is to establish a universally accepted interoperability standard that connects traditional capital markets and the Web3 ecosystem, potentially adding trillions of dollars in market value to the blockchain industry.
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