The price of Chainlink may approach the $20 mark as outflows from exchanges increase and the ecosystem continues to develop.
On Wednesday, the price of Chainlink (LINK), the largest provider of oracle services, was $16 — 60% higher than the lowest point this year.
CoinGlass data shows that investors continue to accumulate coins in anticipation of a recovery. As seen below, since June of last year, the net outflow from exchanges has remained negative every week. This week, $11.27 million LINK was withdrawn from exchanges after an outflow of $55.2 million last week.
A decline in exchange balances typically occurs when investors transfer their tokens to self-custody wallets. On the other hand, an increase in balances indicates selling pressure as investors deposit coins onto exchanges.
Chainlink technology is gaining popularity as the decentralized finance (DeFi) sector expands and the prospects for tokenizing real assets improve. For example, Chainlink recently facilitated a transaction between JPMorgan and Ondo Finance (ONDO).
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The Chainlink cross-chain interoperability protocol was launched on the Solana (SOL) mainnet, unlocking assets worth over $18 billion. CCIP also helped Solv Protocol, a Bitcoin staking platform, increase its assets to $2.5 billion, of which $1.16 billion is secured by CCIP.
Analysts believe that the RWA industry is still in its early stages of development and has significant growth potential, which could benefit Chainlink. According to asset manager VanEck, the market for tokenized securities has already reached $50 billion and could exceed $30 trillion by 2030.
It is expected that the price of LINK will also benefit from Chainlink's partnership with Swift, a global financial messaging network that processes trillions of dollars annually. The collaboration aims to integrate blockchain infrastructure with traditional finance to enhance efficiency.
Technical analysis of the Chainlink price
LINK price chart | Source: crypto.news
The daily chart shows that LINK formed a double bottom at $10.20 last November and again in April — a bullish reversal pattern that often signals a strong upward trend. Over the past three weeks, LINK has also formed an ascending channel and is currently supported by the 50-day weighted moving average.
The most likely scenario is a continuation towards the psychological resistance level at $20, which is 27% above current levels. A drop below the lower boundary of the ascending channel would invalidate the bullish forecast.