Chainlink price has staged a strong recovery in the past few days as investors cheered some of Donald Trump’s policies and its growing ecosystem. LINK token rose for four straight days, reaching its highest swing since January 6. It has risen by 34% from its lowest level this month. So, what next for Chainlink as the crypto boom resumes?
Chainlink’s ecosystem is growing
Chainlink, the biggest oracle network in crypto, has continued to grow its ecosystem, becoming one of the most diverse projects in the industry.
Initially, it was an oracle project that moves off-chain data to the on-chain. Some of the biggest players in crypto projects like AAVE and Compound embraced it.
Recently, it has launched other solutions that have become popular among developers. For example, it launched the cross-chain interoperability protocol (CCIP), which is a standard that enables developers to build secure applications that can transfer tokens and messages across different chains.
CCIP is an important part of the growing industry of Real World Asset (RWA) tokenization. Analysts expect that the industry was valued at $2.3 billion in 2021 and that it would surge to over $5.6 billion by 2026. McKinsey expects that assets worth over $2 trillion will be tokenized by 2030, while other analysts place the number at $10 trillion.
Chainlink has been embraced by numerous companies its technology. The most notable ones are Swift Society, which is owned by some of the biggest banks globally. Swift handles over $150 trillion in transactions annually.
Chainlink has also partnered with other companies like Coinbase, Emirates NBD, UBS, and ANZ Bank.
The company recently launched the Cross-Chain Token (CCT) standard that streamlines token transfers across blockchains using CCIP. Several cryptocurrencies like Shiba Inu and Floki have embraced this standard. The latest CCIP upgrade went live this week.
OKX @wallet has adopted the Chainlink standard for secure cross-chain interoperability to unlock L2 staking across @arbitrum, @base, @ethereum, and @Optimism. OKX is leveraging @LidoFinance’s Direct Staking rails powered by CCIP to enable users to stake ETH directly from L2s.
Chainlink price may do well in the coming months as more crypto and corporates join its ecosystem.
At the same time, the United States has committed to become more crypto friendly under Donald Trump. According to Bloomberg, the administration plans to elevate crypto as a national priority. He will sign an executive order that will create a crypto advisory council and guide government agencies to work with the industry.
Trump’s policies significantly differ from those promoted by Joe Biden whose SEC went to war with the industry. Under Gary Gensler, the agency filed over 86 lawsuits against companies like Ripple and Binance.
Trump also wants to prioritize American crypto projects as it creates a reserve fund. Chainlink will likely be one of the top projects if this happens. There are also chances that Chainlink will have its spot ETFs this year, a crucial factor now that LINK balances on exchanges have fallen.
Chainlink price forecast
The daily chart shows that the LINK token price has formed several bullish chart patterns that may push it higher in the coming months.
Chainlink has formed a cup and handle chart pattern, which is characterized by a vertical line and a rounded bottom. It is one of the most popular bullish patterns in the market.
LINK price has also formed a bullish flag chart pattern, a popular continuation sign. This pattern comprises a long vertical line and a falling cannel that resembles a flag.
Therefore, Chainlink will likely have a strong bullish breakout. Bulls target the next resistance at $31, which was reached on December 13, at its highest swing. This target is about 30% above the current level. A move above that level will likely see it surge to the next crucial resistance level at $50.
The post Chainlink price prediction: here’s why LINK may surge to $50 soon appeared first on Invezz
