Chainlink Price Climbs for Five Consecutive Days Amid Resistance at $10.60

Chainlink Price Climbs for Five Consecutive Days Amid Resistance at $10.60

Chainlink’s price has seen steady growth over the past five days, despite encountering periodic resistance near the $10.60 mark. The asset currently finds itself oscillating between bullish and bearish trends, with market volume and sentiment likely to determine its next direction.

SWIFT’s New Tokenization Initiative: A Catalyst for Chainlink?

In related news, SWIFT, the global leader in secure financial messaging, has introduced a new global infrastructure aimed at simplifying the transfer of tokenized assets. This initiative could provide a bullish signal for Chainlink, given the collaboration between the two entities to bridge traditional finance (TradFi) data with blockchain networks.

SWIFT’s project seeks to enhance real-time settlement and exchange of tokenized assets, which experts predict could expand the real-world asset (RWA) market to a $30 trillion valuation by 2034.

Chainlink plays a crucial role in the RWA ecosystem, as its Cross-Chain Interoperability Protocol (CCIP) enables seamless connectivity across different blockchain environments. Additionally, SWIFT is preparing to test multi-ledger Delivery-versus-Payment (DvP) and Payment-versus-Payment (PvP) transactions, services that Chainlink already supports through its CCIP offering.

Increased Demand for LINK Could Push Prices Higher

As Chainlink services are paid for using LINK tokens (purchased on the open market) higher demand for its solutions could result in a price surge, potentially pushing LINK above the $12 mark.

LINK’s Social Dominance Surges

Recent data from Sentiment shows a sharp rise in Chainlink’s social dominance, with discussions featuring the keyword ‘LINK’ reaching a yearly high across social media platforms. However, the number of wallets holding LINK has decreased by 1,867 over the past month.

Despite this decline in wallet numbers, the increase in social conversations presents a bullish outlook for LINK, particularly if market conditions stabilize. Historically, when Chainlink garners significant social attention, the price often follows, especially in cases where sentiment is positive.

Currently, LINK is trading at $10.60, marking a 2.6% increase over the past 24 hours.

Technical Analysis: LINK Eyes $15 If Key Resistance Breaks

While LINK remains in a broader downtrend, recent price action shows signs of a potential short-term reversal after bouncing off support at $9.00. The asset is now approaching a key resistance level near $11.25, where it is also testing the 50-day Exponential Moving Average (EMA).

Strong support remains around $9.00, having been tested several times. However, the next significant challenge on the upside lies at $11.25, with further resistance around $13.37, in line with the descending trendline and the 200 EMA.

A potential double-bottom reversal pattern is forming, with the neckline at $12.00. If LINK gains enough momentum and volume, a breakout above this level could propel the price toward $15.

On the flip side, failure to breach the $11.25 resistance could invalidate the double-bottom pattern, potentially sending LINK below its $9.00 support and setting new yearly lows under $8.00.