Chainlink (LINK) ended last month on a bearish note, falling more than 7.9% over the past two weeks to trade around $12.74 in early Asian trading Thursday. Despite this decline, the mid-cap altcoin, which has a market cap of around $12.79 billion and average daily trading volume of around $300 million, still signals a possible bullish rebound.
What will happen in the future?
A promising future
Additionally, Chainlink’s price has established solid support above $12.5 over the past four months.
In addition, Chainlink’s monthly relative strength index (RSI) has rebounded from the 50% level. According to Ali Martinez, a well-known cryptocurrency analyst, the TD Sequential indicator has issued a buy signal, so a significant rebound is expected in the future.
Chainlink’s role in Web3 adoption
In recent years, Chainlink has become key to mainstream Web3 adoption. With support from prominent investors and smart contract developers, Chainlink has led development activity on the Ethereum network over the past 30 days.
As a reliable source of cryptocurrency oracle data, more and more spot Ethereum and Bitcoin ETFs have integrated with Chainlink to ensure maximum transparency. For example, 21Shares recently integrated with Chainlink Proof of Reserves (PoR) to enhance the reserve transparency of the 21Shares Core Ethereum ETF (CETH).
Chainlink has played an important role in helping institutional investors tokenize real-world assets such as gold, bonds, and real estate. In addition, Chainlink's Cross-Chain Interoperability Protocol (CCIP) provides a secure and scalable solution for interoperability in the Web3 industry.
LINK Technical Analysis
Chainlink price has gained significant bullish sentiment in recent months, suggesting a breakout may be imminent. From a technical perspective, Chainlink has completed the second phase of the Elliott Wave Principle, indicating that a second bullish cycle is imminent.
If LINK’s price manages to rebound, the target range is between $18.80 and $22.80, which aligns with the 1.618 and 2.618 daily Fibonacci Extensions. Conversely, if Chainlink fails to recover the daily 50 and 200 moving averages (MAs) as support, its price could fall back to around $10.
