Chainlink (LINK) price has been trading within the $5.5-$9.65 price range since June 2022. The crypto token currently stands 7.6% above the range low of $5.5. LINK crypto is 1.3% up today and changed hands at $5.95 till press time.
The largest cryptocurrency by market capitalization, Bitcoin, rose by 5% on Tuesday as the Greyscale won the lawsuit. The pump in the Bitcoin price also led to a short-term 3.5% pump in LINK price. However, the bullish momentum eventually faded as the price returned to its daily lows.
Earlier in June, Chainlink and Swift announced a collaboration project where they would try to connect and transfer tokenized value across multiple blockchains. This collaboration has been a success as recently, Swift has successfully used Chainlink’s Cross-Chain Interoperability Protocol (CCIP) to connect with different blockchains.
Despite the successful experiment of using CCIP, a recent report stressed the need for regulatory control on the tokenization. As per the report, some additional security measures are also needed that focus on data privacy. Chainlink price failed to gain any bullish momentum despite a successful CCIP experiment by Swift.
LINK price chart shown below shows the price trading in a long-term range of $5.5-$7.5. The bottom and the top of the range have provided strong support and resistance levels for the price, respectively. The coin also broke below the 200 MA on 16 August, which is a very bearish sign.
Chainlink price prediction looks bearish as the price is making its way to retest the range low of $5.5 for support. I expect a 10% correction from the current level if the bears remain in control in the coming weeks. In order to see any upside, the price must reclaim the 200 MA and the range mid of $7.3.
I’ll keep posting my updated LINK outlook along with my personal trades on Twitter, where you’re welcome to follow me.
This post was last modified on Aug 31, 2023, 17:20 BST 17:20