- Chainlink price surged after the launch of Cross-Chain Commmunication (CCIP).
- It also jumped as whales accumulated the coin after the CCIP news.
- Open interest in the futures market has jumped to the highest level since 2021.
Chainlink, the biggest oracle in the blockchain industry, surged on Thursday as the coin regained momentum. LINK, its native token, jumped to a high of $8.3, the highest level since April 19th. Other top-performing cryptocurrencies on Thursday were Polygon, Baby Doge 2.0, Stellar, and Synthetix.
Why LINK is soaring
Chainlink is one of the most important players in the blockchain industry. It is an oracle network that powers some of the biggest players in the DeFi industry, include AAVE, Compound, Venus, GMX, and Liquity among others. It has a Total Value Secured (TVS) of over $21 billion and has facilitated transactions worth over $8.2 trillion.
Chainlink provides other services. For example, it provides market and data feeds, verifiable random generator (VRF), and proof of reserve among others. All these features make it an important part of the industry.
Chainlink price jumped on Thursday after the developers launched another product. They launched the Cross-Chain Communication (CCC) tool that is at the intersection of blockchain and traditional finance.
Read more: How to buy Chainlink.
CCIP also enables different protocols to communicate with each other. Initially, the project went live in five testnets: Arbitrum Goerli, Avalanche Fuji, Ethereum Sepolia, Optimism Goerli, and Polygon Mumbai. In most periods, cryptocurrency prices tend to rally after a major product launch.
Meanwhile, LINK price rose after whales started buying the coin. As I wrote elsewhere, a whale – or a large investor – bought LINK worth over $6 million. This is important because the whale could be an insider who has more information about the network.
Further, there is increasing demand for Chainlink in the futures markert. Data by CoinGlass shows that the open interest for LINK has soared to over $295 million, with most of them being in Binance. It is followed by Bybit, OKX, Bitget, and dYdX.
Chainlink price prediction
The 4H chart shows that the LINK price has made a strong comeback in the past few days. It has managed to move above the important resistance level at $7.36, the highest level on July 14. At the same time, the coin has moved above the 25-period and 50-period moving averages while the Relative Strength Index (RSI) has moved to the overbought level.
Therefore, while the coin has more upside, there is a likelihood that it will have a small pullback as sellers target the support at $7.36. This will happen as the current investors start to take profits.
