The price of Chainlink (LINK) has shown a modest increase this week, trading at $8.83, which is an improvement of 23% from its lowest point this year. With a market capitalization exceeding $6.2 billion, LINK’s price remains 68% below its peak reached in August of the previous year.
A key factor driving this rebound appears to be investor anticipation surrounding significant developments in the Chainlink ecosystem. Notably, the Bank of England (BoE) has chosen Chainlink for its Synchronization Labs program, an essential part of its real-time gross settlement (RTGS) system. This initiative positions Chainlink alongside other prominent participants such as Quant (QNT), Swift, Ctrl Alt, the London Stock Exchange, and Nuvante.
In addition to this, Robinhood has selected Chainlink as the oracle network for its newly launched layer-2 chain, which utilizes the Arbitrum framework. Ondo, a leading entity in real-world asset tokenization, has also collaborated with Chainlink for its tokenized stocks and exchange-traded funds. Moreover, Polymarket, a major player in the prediction market space, tapped Chainlink to enhance its network’s functionalities, joining Amp, which has provided oracle solutions to Polymarket since inception.
Chainlink has also been accumulating its tokens via off-chain fees. Current data indicates that the number of tokens in the Strategic LINK Reserves has now surpassed 2 million, valued at approximately $17.9 million. Despite this accumulation, Chainlink remains at a loss, given that its average cost is pegged at $15.
American investors have shown continued interest in LINK exchange-traded funds (ETFs). Recent figures reveal that both Grayscale and Bitwise Chainlink ETFs have collectively attracted over $6.56 million in assets this year alone, leading to total inflows exceeding $81 million.
A closer look at the technical analysis of LINK reveals the token’s volatility over recent months. The price has declined from a high of $27.90 in August of last year to a recent low of $7.10. Although it has recently rebounded to $8.83, the price remains below a critical support level at $10, which has not been seen since April of last year, and is also under the 50-day and 100-day Exponential Moving Averages (EMA).
Given the ongoing challenges in the crypto market, analysts suggest that LINK may face continued downward pressure. If this trend persists, a significant support level to monitor will be $7.10; breaching this could intensify the decline, potentially reaching a psychological threshold at $5.
