Chainlink price is in a strong bull run, and is in its third consecutive week of gains. LINK token soared to a high of $25 this week, reaching its highest level since January 2022. It has jumped by over 222% from its lowest level this year.
Chainlink price crosses key resistance
On the weekly chart below, we see that the LINK price crossed the important resistance level at $23 this week. This was an important level since it was its highest level on March 11. It was also the neckline of the slanted double-bottom pattern shown in green.
$23 was also the upper side of the cup and handle pattern that started to form in March this year. A C&H is one of the most popular bullish signs in the market.
Chainlink price has also moved to the 50% Fibonacci Retracement level at $26.56. Most importantly, it has rallied above the 50-week and 25-week Exponential Moving Averages (EMA), meaning that bulls are in control. Also, the coin has moved above the Ichimoku cloud indicator.
Meanwhile, the Relative Strength Index (RSI) and the MACD indicator have all pointed upwards.
Therefore, the path of the least resistance for the coin is bullish, with the next reference level to watch being the 38.2% point at $32.78. In the long term, a strong bull run to $52 will not be ruled out.
This prediction points to a 25% jump above the current level. On the flip side, a drop below the key support at $23 will invalidate the bullish view.
LINK is supported by strong fundamentals
In addition to strong technicals, the Chainlink price is being supported by strong fundamentals.
For starters, Chainlink is a blockchain network that provides oracles to companies in the industry. An oracle simply connects off-chain data to the blockchain. For example, most decentralized exchanges and lending protocols use oracles to ensure that the data they provide is accurate.
Therefore, Chainlink price is rising as demand for this technology increases. Just recently, Donald Trump’s World Liberty Finance (WLFI) selected Chainlink as their oracle providers.
Data by DeFi Llama shows that the total value secured in the Chainlink network has jumped to over $37 billion. This figure is much higher than the other oracles like Vand Protocol, Chronicle, Pyth, WINKLink, and Internal, combined.
Chainlink is also a major player in the Real World Tokenization (RWA) industry. It does that by providing the Cross-Chain Interoperability Protocol (CCIP) that lets multiple chains communicate.
Meanwhile, crypto analysts are upbeat about the LINK price. For example, one analyst noted that the rally was just starting, citing the power of Chainlink marines or fanatics. He sees the coin jumping to a record high. Another analyst estimated that the Chainlink price would soar to $32.
