- LINK surges 13.47% in a day, and the total yearly gain exceeds 130%.
- DTCC and Chainlink pilot boosts LINK tokenization efforts.
- Indicators hint at robust bullish sentiment in the short term.
The price of Chainlink (LINK), a blockchain oracle token, has surged in recent weeks, driven by positive market sentiment and a successful pilot program with the Depository Trust and Clearing Corporation (DTCC).
Spearheaded by Bitcoin and closely followed by an array of altcoins; including the whimsically named memecoins, the digital currency terrain has experienced a robust elevation.
Over the past year, the LINK token has witnessed a massive spike exceeding 130%, showcasing a marked escalation in both investor confidence and its overall market valuation. Consequently, recent dynamics in trading have been particularly robust for LINK, as evidenced by an 18.09% increment over the preceding 30 days and an 11.13% amplification just this week.
LINK/USD 24-Hour Chart (Source: CoinStats)
As of press time, the LINK token is trading for $15.82, a 13.47% increase over the previous day’s data. This jump in value has also resulted in a 12.91% increase in Chainlink’s market capitalization. As a result, the LINK token is presently the 15th biggest cryptocurrency by market capitalization, with a valuation of over $9.26 billion.
In addition, LINK’s trade volume has surged, increasing by 177.77% in the previous 24 hours to approximately $962 million. The considerable increase in trading volume reflects investors’ rising interest and trust in Chainlink’s prospects.
LINK’s Rise Tied to DTCC, Chainlink Joint Effort
The positive market response to the LINK token can be linked to a recent joint initiative between the Depository Trust and Clearing Corporation (DTCC) and Chainlink, a blockchain oracle. Together, they have completed a pilot program with numerous prominent U.S. banks aimed at boosting the tokenization of traditional financial funds.
A DTCC report dated May 16th highlights the program’s success in improving interoperability and streamlining data management for participating institutions. The pilot also facilitated easier access to historical data and the development of expanded API solutions for price data. These advancements are expected to drive further innovation within the financial industry.
Dubbed the Smart NAV Pilot, the program sought to standardize the delivery of Net Asset Value (NAV) data across various blockchains. This standardization was facilitated through Chainlink’s Cross-Chain Interoperability Protocol (CCIP), as detailed in a DTCC report dated May 16. The report underscores the pilot’s significance in improving blockchain interoperability and its functionality within the traditional financial sector.
According to the DTCC report, the pilot effectively improved automated data management while adhering to existing market practices for traditional financial institutions. It also facilitated easier access to historical data, significantly reducing the dependency on manual record-keeping.
Furthermore, the pilot program led to the development of expanded API solutions for price data. These enhancements are expected to improve brokerage services, enable more automated data dissemination, and simplify the access to historical data for funds. These developments are poised to drive further innovation within the financial industry.
LINK Price Action
Technically, the LINK token is encountering resistance on the 4-hour chart, with a key level between $16.016 and $15.654. If the bullish momentum continues, LINK could potentially surpass this barrier and aim for the next key resistance level in the $17 zone.
LINK/USD 4-Hour Chart (Source: Tradingview)
Conversely, if the resistance holds strong, the price may decline to deeper levels, possibly finding support at the 50% Fibonacci level. A breach of this support could lead to further declines, with prices anticipated to fall below the 38.2% Fibonacci level, reaching the lower support level around $12.862 before potentially staging another rally.
From a technical perspective, the MACD indicator is trending vertically and stands at 0.518, signaling strong bullish sentiment in the short term. This is further supported by the histogram on the MACD chart, which shows widening green bars above the zero line, indicating increasing bullish momentum.
LINK/USD 4-Hour Chart (Source: Tradingview)
On the same accord, the RSI indicator is ascending sharply, reflecting the strength of LINK’s current bullish market trend. However, with an RSI value of 82.93, LINK is currently in overbought territory, suggesting that a short-term correction could be forthcoming.
The recent surge in LINK’s price underscores the growing interest in blockchain oracles, which facilitate the secure transfer of data between blockchains and traditional systems. The success of the DTCC pilot program suggests that Chainlink’s technology has the potential to streamline data management within the financial sector. However, the token’s current valuation reflects a high degree of optimism, and a short-term correction remains a possibility.
Disclaimer: The information presented in this article is for informational and educational purposes only. The article does not constitute financial advice or advice of any kind. Coin Edition is not responsible for any losses incurred as a result of the utilization of content, products, or services mentioned. Readers are advised to exercise caution before taking any action related to the company.
