Chainlink price crawled back this week, rising to a high of $14.75 on Thursday, up from this week’s low of $11.81. While the LINK price remains 52% below its highest level this year, several fundamental and technical reasons point to a 110% jump ahead.
Chainlink Price Technical Analysis Points to a Surge
The most bullish case for the LINK price is that it has one of the best technical formations on the weekly chart. This chart shows that the coin dropped to a low of $11.81 last week. This decline was notable for two main reasons: it formed a doji candlestick and retested a crucial support level.
A doji is a candlestick pattern with a small body and shadows above and below. It is one of the most popular reversal chart patterns in the market.
$11.81 was important since it coincided with the lowest swings since June 2023. It is part of the lower side of the giant megaphone pattern that has been forming over the past two years.
This megaphone pattern, characterized by diverging trend lines, suggests a strong price movement in technical analysis. As such, there is a likelihood that the Chainlink price is a coiled spring ready to pounce, with the target being at $30, the upper side of the megaphone.
This price target is about 110% above the current level. However, a move below the lower side of the megaphone at $11.81 will invalidate the bullish view.
Chainlink price weekly chart
LINK Price Forms Falling Wedge
Further, Chainlink’s price has formed a falling wedge on the daily chart, pointing to a strong bullish breakout ahead. This pattern consists of two falling and converging trendlines and is usually followed by a strong breakout when the two lines near their convergence.
In LINK’s case, a strong bullish breakout could occur in the next few days as the convergence nears.
LINK has formed a falling wedge pattern
Chainlink is At the Convergence of Key Macro Themes
Chainlink has numerous fundamental catalysts that may push it higher in the longer term. The most important one is that it is at the intersection of the biggest themes in the financial services industry.
Chainlink plays a pivotal role in the decentralized finance (DeFi) industry, where it provides oracle services to the sector’s biggest players.
READ MORE: Chainlink Multistream: 1000x Faster Data Throughput and Instant Deployment
Further, Chainlink has the biggest market share in the emerging and growing Real World Asset (RWA) tokenization industry. The primary product, the Cross-Chain Interoperability Protocol (CCIP), enables blockchain networks to communicate with each other.
Chainlink has also inked partnerships with some of the biggest banks and institutions globally. Some of the top companies in its ecosystem are Vodafone, Fidelity, UBS, Swift, Euroclear, and Franklin Templeton. Chainlink’s relationship with Swift is notable, as Swift is one of the biggest players in finance, handling over $150 trillion a year.
READ MORE: JASMY Token Now Compatible with Ethereum and Base via Chainlink CCIP
