Chainlink (LINK) has seen a remarkable increase of 7.13% in value today, now trading at $11.82, largely due to several significant developments.
Firstly, a collaboration with Bottomline, a SWIFT services provider, will allow over 600 banks to utilize Blockchain settlement via Chainlink. Secondly, the state of Wyoming has integrated Chainlink’s Proof of Reserve into its state-issued FRNT stablecoin, facilitating real-time tracking of reserves and supply. Lastly, LINK’s gains are buoyed by a broader market rally, as Fed Governor Christopher Waller has alleviated investor anxiety regarding potential aggressive rate hikes.
Challenges Ahead for Chainlink
These advancements, coupled with the overall upward trend in August, have contributed to LINK’s impressive 45.78% increase over the past month. However, several hurdles must be cleared to support the argument for a legitimate rally.
Earlier this year, LINK experienced a significant drop beneath the symmetrical triangle pattern it was in, resulting in a more than 40% decline to $7.20. It then stabilized, forming a local bottom between that level and the $8.60 resistance.
Following a period of consolidation, LINK recently surged past the $8.60 and $10.90 supply zones.
For a genuine bullish trend to materialize, LINK must overcome the horizontal supply barrier located at $12.70. Achieving this could pave the way for a retest of the $14.60 psychological level.
Source; TechCharts
However, if the local low of $7.20 fails to hold, a retest of the historical support level at $5.40 becomes a likely scenario.
Other Factors at Play
Market dynamics are also influenced by the ongoing conflict in the Middle East, as well as a potential postponement of the Senate vote on the CLARITY Act.
While the Fed Governor’s comments have eased concerns over imminent rate hikes, the agency’s future steps remain uncertain, especially as inflation remains at a multi-month peak above 2%.
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