Chainlink ($LINK) has experienced a notable increase of 7.13%, currently trading at $11.82, largely due to several significant advancements.
Firstly, there is a new collaboration with Bottomline, a service provider for SWIFT, which grants over 600 financial institutions access to blockchain settlement via Chainlink. Secondly, Wyoming has incorporated Chainlink’s Proof of Reserve into its state-issued FRNT stablecoin, allowing for real-time tracking of reserves and supply. Additionally, $LINK is benefiting from a broader market rally as Fed Governor Christopher Waller has alleviated concerns over aggressive rate hikes earlier this month.
Resistance Levels for Chainlink to Overcome
The combination of these advancements and the overall positive trend in August has led to a remarkable 45.78% rise for $LINK over the past month. However, the token must navigate through several challenges to substantiate a genuine rally.
Earlier this year, $LINK experienced a significant drop below its symmetrical triangle pattern, resulting in a decline of over 40% down to $7.2. At this level, the token stabilized, forming a local bottom between this price and a ceiling of $8.6.
After several months of consolidation, it recently surpassed the $8.6 and $10.9 resistance levels.
For a definitive bullish reversal to occur, $LINK must break through the overhead supply area situated at $12.7. Success at this point would set the stage for a retest toward the psychological level of $14.6.
Source; TechCharts
However, if the local bottom at $7.2 does not hold, we may see a retest of the historical support level at $5.4.
Other Influencing Factors
Additional elements impacting the market include ongoing conflicts in the Middle East and potential delays in the Senate’s vote regarding the CLARITY Act.
While the Fed Governor has alleviated some concerns regarding a rate hike, the future actions of the Federal Reserve are still uncertain, especially with inflation rates remaining elevated above 2% for several months.