Chainlink’s cryptocurrency, LINK, has recently demonstrated notable momentum by forming a double-bottom pattern, indicating a potential price rebound. This surge follows a significant announcement from Swift, the influential financial messaging network, regarding its initiative to tokenize assets.
The price of LINK surged by 5.5%, reaching $12.58, complemented by a 20% increase in its 24-hour trading volume. This positive trend was catalyzed by Swift’s declaration of a partnership with over 30 banks to develop a blockchain ledger that will facilitate the integration of tokenized assets with traditional financial systems. Thierry Chilosi from Swift emphasized the necessity of collaboration for unlocking the benefits of this initiative.
Swift is pivotal in the financial services sector, connecting more than 11,500 institutions across over 200 countries and processing approximately $150 trillion in cross-border payments annually. Consequently, the formation of a new ledger network will serve as a vital infrastructure for asset movement in the financial ecosystem.
Chainlink stands to gain significantly from this partnership, leveraging its longstanding relationship with Swift. The collaboration includes connections to key partners of Swift, such as DTCC, Euroclear, UBS, Standard Chartered, and ANZ, reinforcing Chainlink’s position in the evolving blockchain landscape.
In a strategic move, Chainlink has undertaken a buying spree of its own tokens, accumulating over 92,000 LINK this past week alone. This acquisition raises its total assets to approximately 1.23 million tokens, valued at around $15.3 million—a substantial amount for a project that originated just a few years ago.
From a technical analysis perspective, LINK shows potential for further gains in the upcoming weeks. The token established a double-bottom support at $11.77, with a critical resistance area or “neckline” identified at $15, marking its highest price point this month. This bullish formation follows a larger falling wedge pattern characterized by two descending trendlines.
As long as LINK remains above the double-bottom support at $11.77, there are optimistic projections for a rebound, with the next resistance level being the neckline at $15, roughly 20% higher than current levels. However, a decline below the $11.77 support would invalidate the positive outlook for LINK’s price trajectory.
