Chainlink Price Rebounds: Is a Bigger Move Coming?
The price of Chainlink is currently trading at about $16.59, up 6.48% over the previous day. A recent rebound from the declining channel support around $13.70 is shown on the daily chart. The price presently seems to be moving in the direction of a retest of the declining trendline resistance, which represents the channel’s upper boundary and is projected to be around $17.50.
Chainlink Temporary Rally May Stall Without Break Above $17.50
The possible retest of that resistance is supported by momentum indicators on the daily chart. The MACD histogram is printing green and indicating the beginning of a bullish crossover, while the RSI (45) is climbing and rebounding from oversold levels. On the weekly chart, however, the price of Chainlink seems to be forming a huge head and shoulders pattern, with the neckline support near $10. It would validate the bearish pattern and pave the way for additional declines if it were broken.
The latest uptick seems to be a temporary relief rally rather than the beginning of a possible reversal when viewed through the prism of this weekly structure. Price movement is likely to remain corrective within the larger bearish structure unless Chainlink can break above the $17.50–$18.00 barrier with follow-through.
Chainlink at the Center of Asia and European Tokenized Finance Push
A backdrop of significant fundamental events coincides with the technical downturn in the price of Chainlink. Firstly, Chainlink recently formed a significant alliance with SBI Digital Markets in Japan to promote tokenized finance solutions throughout Asia. In particular, Chainlink’s CCIP will be the only cross-chain infrastructure used by SBI Digital Markets.
A successful pilot by UBS, a Swiss multinational investment bank and one of the biggest financial organizations in the world, is another notable achievement. Using Chainlink’s Oracle infrastructure, the bank experimented with tokenized money market fund subscription and redemption on-chain. Lastly, Dinari and S&P Dow Jones Indices have recently partnered. The S&P Digital Markets 50 Index will go on-chain later this year, according to their joint strategy.
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