Chainlink Labs’ Vince Turcotte told Cointelegraph that they expect digitally-native institutions to be the first to adopt the integration.
Chainlink Facing Strong Rejection From Profit-Taking, Will CCIP Recharge Demand?
One analyst on X notes that Chainlink is facing a tug-of-war between bullish momentum and strong upside resistance from profit-taking traders. For bulls to add to their longs and extend the uptrend, the existing oversupply must be moped, paving the way for more gains above immediate liquidation levels.
Profit Taking Slowing Down LINK Bulls
Looking at the LINK price action in the daily chart, it is clear that buyers have the upper hand. Bulls have been relentless since the token bottomed out in September 2023.
Since then, LINK has doubled, even breaking above the psychological round number at $20. At press time, buyers are still in control, snapping back to trend despite the market-wide cool-off after Bitcoin crashed last week.
LINK is within a broader range, with clear caps at around $17.9 on the lower end and $21.7 on the upper end. After protracted expansion from September, the emergence of a ranging market could suggest that traders are exiting their positions, slowing down the uptrend.
This has been confirmed by on-chain data that the analyst tagged, explaining the recent slowdown. Indeed, on-chain data suggests investors have been cashing in on the recent expansion.
As a result, the excess supply needs to be absorbed by the market before LINK Bulls builds enough momentum to drive the coin to new 2024 highs above $21.8.
Chainlink CCIP Adoption To Recharge Demand?
Despite the short-term headwinds, Chainlink bulls are banking on the widespread adoption of the Chainlink Cross-Chain Interoperability Protocol (CCIP) as a demand catalyst. CCIP is critical for blockchain interoperability. The solution allows secure communication between smart contracts of linked blockchains and external data sources.
CCIP has been adopted by, among others, Metis, a layer-2 scaling solution for Ethereum. Circle, the issuer of USDC, a stablecoin, is also leveraging the platform to enhance interoperability.
Recent data shows a surge in CCIP revenue, pointing towards increased adoption of this multichain bridging platform. As of March 26, Dune Analytics data shows that the CCIP has generated over $484,000 in revenue. This figure will likely increase as CCIP finds adoption and Chainlink integrates with even more protocols, businesses, and blockchains.
Still, the pace at which LINK breaks above March highs and registers fresh 2024 highs will also demand the performance of other coins, including Bitcoin and Ethereum. A resurgent BTC could draw more capital, lifting altcoins, including LINK, in the process.
Is Chainlink and Polygon About to Rip Higher? Whales Accumulating
According to Lookonchain data on December 20, whales are actively accumulating Chainlink (LINK) and Polygon (MATIC) and moving them from Binance, one of the world’s largest cryptocurrency exchanges by trading volume.
Citing on-chain transfers, Lookonchain notes that LINK is specifically seeing significant accumulation from a fresh wallet labeled “0x8eAD,” which has withdrawn 247,860 LINK worth approximately $3.5 million from Binance in the past two days.
Meanwhile, two new wallets, “0xa813” and “0x38b3”, have been actively accumulating MATIC, withdrawing 5 million MATIC worth around $3.13 million from Binance earlier today.
Whales Accumulating, Will MATIC And LINK Rally?
The fact that whales, individuals, or entities controlling large amounts of a particular token or coin are circling MATIC and LINK is net bullish and might support prices in the coming sessions.
Notably, the transfer is considered bullish when whales move coins from exchanges to non-custodial wallets like hardware wallets or even hot wallets to engage in decentralized finance (DeFi), degen trading, or NFT trading.
This shift is because, unlike in centralized exchanges like Binance, where their intention is usually trading for other coins or USDT, in on-chain apps, they can use the same stash to earn rewards, for instance, by providing liquidity or staking.
Therefore, considering the recent transfer, LINK and MATIC prices might recover, increasing in the coming few trading sessions. Thus far, looking at candlestick formations in the daily chart, LINK is stable and remains within an uptrend. Notably, prices are trading above the 20-day moving average, suggesting that the coin found support. LINK is currently up 155% from September lows but down 15% from November peaks.
On the other hand, MATIC is also stable and rejects attempts for lower lows. After days of consolidation, the coin has support at around $0.70, matching a critical level recorded in November.
Still, whether the uptrend will resume depends on whether prices will float higher, breaking above $0.93 or November 2023 highs in the coming session.
Technically, $0.95 marks a critical reaction level for MATIC that, if comprehensively broken, could open the doors for $1.20 and $1.60 in the coming sessions.
Polygon And Chainlink Roll-Out Critical Features
Beyond current technical formations, fundamental events prop up Polygon and Chainlink bulls, especially around decentralized finance (DeFi) and layer-2 scaling.
Chainlink’s new staking upgrade aims to mop more LINK from circulation, possibly increasing prices on rising demand for Cross-Chain Interoperability Protocol (CCIP).
Meanwhile, as other blockchains repurpose to become Ethereum layer-2, Polygon CDK is becoming a critical cog in fast-tracking the process, directly supporting MATIC prices.
Analyst Forecasts Chainlink (LINK) To Fall Below $10 Following Massive Price Surge
Chainlink (LINK) has emerged as one of the top cryptocurrencies in the last week following an impressive market performance which saw the token gain by 46.49% in the past seven days.
Even amidst whale movements, which suggest that investors are taking profit, LINK has managed to maintain its bullish momentum, gaining by 6.10% in the last day to above the $11 mark.
However, despite the positive sentiment that has currently overwhelmed the LINK market, some analysts believe the token may be due for a major retracement.
LINK To Fall Below $10: Is The Bullish Run Over?
In a post on X on Friday, crypto analyst Altcoin Sherpa shared a prediction that LINK may soon experience a price dip, falling as low as $9.50.
However, Altcoin Sherpa notes that this potential price loss may not spell the end of LINK’s bullish phase. In fact, the analyst describes the token’s price coming down as “healthy.”
$LINK: Be patient marines, coming down a bit is healthy. $9.50 would be great. #LINK pic.twitter.com/eJBdkFar4o
— Altcoin Sherpa (@AltcoinSherpa) October 27, 2023
According to Sherpa’s prediction, LINK’s slide below $10 could simply be a price recorrection before the token resumes its upward trajectory. If this forecast proves true, many traders could view this $9.50 region as a great entry zone.
Interestingly, Cryptonary, another analyst on X, has recently shared a similar price prediction.
In a post on Thursday, Cryptonary called for much caution in the LINK market, stating the crypto asset may not sustain its current high price levels for long.
To back up this forecast, the analyst states the Relative Strength Index (RSI) shows that Chainlink is currently in the overbought zone, which indicates a price pullback lies on the horizon.
Although many traders have opened long positions on LINK as indicated by the market’s positive funding rates, Cryptonary has advised investors against “joining the crowd”
LINK surged 60% in 6 days: What's next?
LINK is overbought, but can it sustain at these higher levels here? In our experience, moves that go straight up aren’t usually sustainable. But let’s find out what the charts say!
Technical analysis
LINK has been able to hold up at… pic.twitter.com/nVvpYPKp1t
— Cryptonary (@cryptonary) October 26, 2023
Similar to Altcoin Sherpa, the analyst predicts LINK’s price to fall to $9.67 for a short-term retracement. However, with strong selling pressure, Cryptonary states that LINK could trade as low as $8.
At the time of writing, LINK trades around $11.54 with a 0.25% gain on the last day. Meanwhile, the token’s trading volume is up by 8.01% and valued at $824.92 million.
Chainlink Records Partnership Streak
In other news, Chainlink recently shared with the crypto community its streak of collaborations with major traditional brands in promoting the adoption of blockchain technology.
#Chainlink is collaborating with key players across the global economy:
1. Swift—Standard messaging network for 11K+ banks
2. DTCC—World’s largest securities settlement system, processing $2+ quadrillion annually
3. ANZ—Leading Australian bank with $1T+ in AUM
4. Vodafone…— Chainlink (@chainlink) October 27, 2023
In a thread posted on X on Friday, the blockchain highlighted its partnership with the Swift payment company aimed at facilitating the seamless transfer of tokenized assets across multiple chains using Chainlink’s Cross Chain Interoperability Protocol (CCIP).
In addition to Swift, Chainlink also discussed its partnership with the Depository Trust and Clearing Corporation, the Australia and New Zealand Banking Group Limited, and Vodafone Digital Asset Breaker (DAB).
Tellor (TRB) Is Up 640% In 2023, Back To 2021 Highs Ahead of Bitcoin, XRP?
Tellor (TRB), a decentralized oracle protocol and Chainlink alternative, has been a top performer in the past few months. Looking at price action, TRB is up 640% in 2023, surging 269% in the past month alone and reversing losses of 2022. A spike in trading volume is behind this resurgence, suggesting bull engagement.
TRB Prices Rallying, Reverses 2022 Losses
With TRB galloping past $44 and 2022 highs, the token has outpaced some of the top coins in the sphere, including XRP and Bitcoin (BTC). For context, Bitcoin is struggling to break above $30,000. On the other hand, XRP has reversed all gains registered following a court ruling declaring XRP as a commodity. TRB is more than 6X from 2023 lows and surging in a crypto winter.
A look at onchain data shows that though there are hints of retailers taking profits at spot rates, the number of TRB on exchanges has been dropping in the past week. This contraction indicates that retailers and whales could accumulate, adding more TRB.
An analysis of the top TRB whales with over $1 million of tokens reveals interesting patterns. For instance, a fresh whale, “0x656”, holds 111.89K TRB ($6.06 million), a figure accumulated in the past three weeks. Buying at an average of $28.1, the whale has an unrealized profit of over $2.92 million at spot rates. Another new whale, “0x8f8”, accumulated 65.7K TRB ($3.6 million) in the past five days at an entry price of $34.5. With TRB edging higher, the associated address has an unrealized profit of $1.33 million.
Moreover, on-chain data shows that these whales mostly received their TRB from Binance and OKX. While prices have been rallying, on-chain trackers reveal that none of the above whales had moved their coins to exchanges. This points to confidence and expectations of more price gains going forward.
Tellor Rallying Because of Chainlink?
TRB’s rally coincided with SWIFT’s announcement that it had completed its trials leveraging Chainlink’s Cross-Chain Interoperability Protocol (CCIP) in late August. Then, a SWIFT representative said the goal was to drive interoperability and ensure tokenization reaches its full potential. Days after this news, TRB broke above June highs, cementing its place above $13.
Presently, parallel data suggests that the surge in TRB appears to be driven by fear of missing out, mostly from short-term traders and speculators. IntoTheBlock data on September 27 shows that short-term wallet holders have increased their TRB holdings, with over 72% of TRB holders in the money.
Chainlink Price Prediction For September: Buy LINK Now?
Chainlink (LINK) has been a standout in the crypto market recently, registering an 11% increase over the past six days, even as the broader crypto market sentiment remains subdued.
Will Uptober Start Early For Chainlink?
A significant factor that might be driving this price action is the behavior of LINK’s major holders. On-Chain analysis firm, Santiment, highlighted this in a recent tweet, stating: “Chainlink’s key shark tier that holds between 10K-100K LINK has been on an accumulation spree.”
Diving deeper into the data, there are now 3,127 wallets holding between 10,000-100,000 LINK, marking the highest level since December 3, 2022. These wallets have added a staggering $9.6 million worth of LINK in just three days. Since September 3rd, there’s been a 3.2% rise in the number of wallets in this category, with 98 new wallets emerging. This group has accumulated 0.154% of the entire LINK supply in the same period.
However, Chainlink’s journey hasn’t been entirely smooth. The token has been ensnared in a sideways range for an exhausting 485 days, which is over 15 months. The LINK/BTC pair has been on a downward trajectory for more than three years.
Chainlink’s much-anticipated release of the Cross-Chain Interoperability Protocol (CCIP) was met with significant hype. Yet, despite its potential to revolutionize cross-chain communication, its release didn’t provide the expected boost to LINK’s price.
Also the news that a tokenization experiment by interbank messaging system Swift and Chainlink successfully transferred value across multiple blockchains could not move price substantially. In June Chainlink and Swift announced that they would be collaborating with dozens of financial institutions such as BNP Paribas, BNY Mellon, The Depository Trust & Clearing Corporation and Lloyds Banking Group and others.
However, the upcoming Chainlink’s SmartCon in October from October 2nd to 3rd might be the catalyst the token needs. Rumors are rife about a potential major announcement between Swift and Chainlink Labs, which could connect web3 infrastructure to the banks involved in previous tests.
If history is any indication, Chainlink could experience a surge in price leading up to the event, driven by the euphoria and speculation. “Uptober” could come early for the Chainlink price.
LINK Technical Analysis
The recent 11% surge in LINK’s price suggests that the market might already be reacting to the upcoming hype. However, the 4-hour chart indicates a rejection at the 23.6% Fibonacci retracement level at $6.37, which aligns closely with the 200 EMA at $6.40. For LINK to sustain its upward trajectory, it’s imperative to breach this level, with the next significant target being the 50% Fibonacci retracement level at $7.08.
The 1-week chart paints a picture of LINK’s prolonged downtrend. The recent hold above the 23.6% Fibonacci retracement level at $5.92 is a positive sign for the bulls, potentially paving the way for another try on the upper trendline of the downtrend channel.
However, several difficult challenges lie ahead. The 50% Fibonacci retracement level at $7.20 is the first major resistance. If LINK can push past this, a breakout from the 15-month downtrend channel becomes possible. For this to happen, Chainlink would need to break above the $8.30-$8.40 area as it currently stands, and would then encounter the 78.6% Fibonacci retracement level at $8.58. Large selling pressure can be expected at this point.
Should LINK falter at this juncture, a return to the downtrend channel is likely. Conversely, if the $8.58 mark is surpassed, it would signal a significant win for the bulls, potentially setting LINK on a path to challenge its 15-month high at $9.61.
SWIFT partners with Chainlink for cross-chain crypto transfer project
The project will connect SWIFT’s network to nearly every blockchain to allow traditional finance players access to digital and traditional assets on the one network.
