Over the past five days, the price of Chainlink has been on the rise, encountering occasional resistance near $10.60. The overall trajectory of LINK price is caught between a bearish and bullish pattern, with market sentiment and trading volume determining which direction will prevail.
Meanwhile, SWIFT has introduced a global infrastructure aimed at simplifying tokenized asset transfers. This development could potentially signal good news for Chainlink, especially considering the collaborative efforts between the two entities to bring Traditional Finance (TradFi) data onto the blockchain.
The unveiling of SWIFT’s initiative revolves around streamlining tokenized asset transfers, enabling the real-time settlement and exchange of tokenized assets on the Swift network, particularly focusing on real-world asset (RWA) trading. It’s anticipated that the RWA sector could reach a valuation of $30 trillion by 2034, with Chainlink playing a crucial role due to its cross-chain interoperability protocol (CCIP) that facilitates connectivity across various on-chain environments.
Swift’s plan to trial multi-ledger Delivery-versus-Payment (DvP) and Payment-versus-Payment (PvP) transactions aligns with services already offered by Chainlink through its CCIP. All services provided by Chainlink require payment in LINK tokens, which are purchased from the open market. An uptick in demand for Chainlink’s services could drive LINK price above $12.
A surge in Chainlink’s social dominance has been observed, with discussions related to ‘LINK’ reaching a yearly peak on social media platforms. However, the number of Chainlink wallets with a balance decreased by 1,867 over the last month. This combination of metrics suggests a bullish outlook for Chainlink’s price, subject to market stability in the upcoming week.
The recent spike in Chainlink discussions correlates with positive news from SWIFT. Historically, an increase in such discussions has often been followed by a rise in price. Currently, LINK is trading at $10.60, marking a 2.6% increase in the last 24 hours.
In terms of price analysis, Chainlink is currently in a downtrend but demonstrating a potential short-term reversal after rebounding from the $9.00 support level. The asset is now aiming towards a resistance zone around $11.25, testing the 50 EMA as a barrier. Noteworthy support lies at $9.00, while future resistance levels are anticipated at $11.25 and $13.37. A potential double bottom reversal pattern is emerging, with a breakout above $12.00 potentially leading to a surge towards the $15 profit target.
However, failure to breach the $11.25 barrier could invalidate the double-bottom reversal pattern, potentially pushing LINK price below $9.00 and establishing new lows below $8.00.