Chainlink price has been rising for the past five days, occasionally finding some resistance around $10.60. Overall, LINK price is tied between a bearish and a bullish pattern, with volume and market sentiment deciding which formation will take the day.
Meanwhile, SWIFT unveiled a global infrastructure to simplify tokenized asset transfers. This might become a bullish signal for Chainlink, as the two entities have been working together to bring TradFi data on-chain.
Can Chainlink Price Benefit From SWIFT RWA Play?
SWIFT, the world’s leading provider of secure financial messaging services, announced a new initiative to streamline the process of tokenized asset transfers. Under the initiative, security buyers can settle, and exchange tokenized assets on the Swift network in real time.
The new initiative will focus on the global trading of real-world assets (RWA), as experts anticipate the industry will grow to a $30 trillion valuation by 2034.
Chainlink is a key player in the RWA industry because its cross-chain interoperability protocol (CCIP) provides connectivity between a wide variety of on-chain environments.
— Chainlink (@chainlink) September 11, 2024
Additionally, Swift plans to test multi-ledger Delivery-versus-Payment (DvP) and Payment-versus-Payment (PvP) transactions on its global platform, a service Chainlink is already offering via its CCIP.
All Chainlink services are paid for using LINK tokens, which must be purchased on the open market. An increase in demand for Chainlink’s array of services could lead to a surge in the price of LINK, well above $12.
LINK Social Dominance Experiences a Spike
Data from Sentiment shows Chainlink’s social dominance increased in the last 24 hours as discussions involving ‘LINK’ as a keyword across social media hit a yearly high.
At the same time, the number of Chainlink wallets with a balance dropped by 1,867 in the last month.
Combining these metrics produces a bullish signal for Chainlink price, on condition that the markets stabilize in the coming week.
This uptick in Chainlink discussions is no surprise, given the recent Swift announcement. When this metric increases, price tends to follow soon, especially if the discussion is positive.
LINK price has increased by 2.6% in the last 24 hours and is trading at $10.60.
LINK Price Analysis: $15 In Sight If This Barrier Breaks
Chainlink price is currently in a downtrend but has recently shown a short-term reversal after bouncing off the $9.00 support zone. It is now moving towards a potential resistance area around $11.25 and testing the 50 EMA as resistance.
LINK has major support at $9.00, which has been tested multiple times and held strongly, but on the way up, the asset may encounter resistance at $11.25. Above that, the next significant resistance is around $13.37, aligned with the descending trendline and the 200 EMA.
Chainlink also shows a potential double bottom reversal pattern forming with the neckline at $12.00. With enough volume, the price could break above the neckline and surge to the estimated profit target of around $15.
Chainlink price prediction shows that if the asset fails to break above $11.25, it may invalidate the potential double-bottom reversal pattern currently forming. LINK price may break below the $9.00 support zone and establish new yearly lows below $8.00.
Frequently Asked Questions (FAQs)
SWIFT recently unveiled a global infrastructure aimed at simplifying tokenized asset transfers. This could signal bullish momentum for Chainlink as SWIFT and Chainlink have collaborated to bring traditional finance (TradFi) data on-chain, leveraging Chainlink’s cross-chain interoperability protocol (CCIP).
SWIFT’s initiative focuses on tokenizing real-world assets (RWAs), an industry expected to reach $30 trillion by 2034. Chainlink, as a key player in this space, could see increased demand for its services. All Chainlink services are paid for using LINK tokens, so higher demand for Chainlink’s services might drive LINK’s price above $12.
Investors should watch for Chainlink’s ability to break resistance at $11.25 and $12.00, as well as the broader market stabilization. SWIFT’s global RWA initiative and its collaboration with Chainlink will be critical factors influencing LINK’s price.
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Evans Karanja
Evans Karanja is a crypto analyst and journalist with a deep focus on blockchain technology, cryptocurrency, and the video gaming industry. His extensive experience includes collaborating with various startups to deliver insightful and high-quality analyses that resonate with their target audiences. As an avid crypto trader and investor, Evans is passionate about the transformative potential of blockchain across diverse sectors. Outside of his professional pursuits, he enjoys playing video games and exploring scenic waterfalls.
Disclaimer: The presented content may include the personal opinion of the author and is subject to market condition. Do your market research before investing in cryptocurrencies. The author or the publication does not hold any responsibility for your personal financial loss.
Source: https://coingape.com/markets/chainlink-price-could-break-above-12-as-swift-unveils-global-rwa-infrastructure/
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