Chainlink’s price has seen a remarkable surge of over 50% in the past week, reaching a 7-month high of $24.28. This surge has been attributed to a combination of factors, including increased interest from whales and growing adoption of Chainlink’s ecosystem by institutional investors.
Data from Nansen indicates that the balance of LINK tokens held by whale wallets has increased by 8.5% over the last 7 days. This significant increase in holdings by whales, who are considered influential investors in the market, is often seen as a positive signal by retail investors. It indicates confidence in the asset and can potentially lead to further price appreciation.
One of the key developments driving Chainlink’s price rally is the adoption of its Cross-Chain Interoperability Protocol (CCIP) by major financial institutions. Chainlink recently integrated its protocol with Swift, the international bank messaging network used by over 11,500 institutions. This integration enables banks to connect directly to blockchains using their existing Swift infrastructure, streamlining interoperability and settlement processes.
In addition, Chainlink has partnered with Intercontinental Exchange, the parent company of the New York Stock Exchange, to provide real-time onchain pricing feeds for foreign exchange and precious metals. These partnerships with established financial institutions highlight the growing acceptance and adoption of Chainlink’s technology in the traditional finance sector.
From a technical analysis perspective, Chainlink’s price has formed a multi-month ascending broadening wedge pattern on the weekly chart. The recent confirmation of a double-bottom formation, with the neckline positioned at $18, suggests a potential bullish reversal. The 50-day moving average is also above the 200-day moving average, indicating a bullish trend bias in the medium to long term.
While an ascending broadening wedge pattern is typically considered bearish, analysts see the potential for Chainlink’s price to move towards $40 in the near future, with some projecting a target of $46. Continued heavy trading activity and growing demand could support this upward momentum.
It is important to note that this article does not constitute investment advice and is intended for educational purposes only. As with any investment, it is recommended to conduct thorough research and consult with a financial advisor before making any decisions.