Chainlink price rose for four consecutive days and retested an important resistance level. LINK surged to a high of $12.97 as BlockTower Capital started buying DeFi tokens. It also rallied as third-party data showed that inflows were rising. It has jumped by 60% from its August lows.
Chainlink Price Surges Amid BlockTower Purchases
LINK price rallied after a report by LookOnChain showed that BlockTower was accumulating popular DeFi tokens like Uniswap and AAVE. In its post, it noted that the company had received these tokens from FalconX, Cumberland, Galaxy Digital, and B2C2Group.
BlockTower Capital is one of the most popular companies in the crypto industry. According to Arkham, it has a crypto portfolio worth $446,987. Most of its holdings are coins like Blur, USD Coin, and Ethereum.
While LINK was not one of those coins, the purchases is a sign that the company believes that the DeFi industry will continue doing well. Data by DeFi Llama shows that the total value locked in DeFi is approaching $100 billion, while the total value secured in Chainlink soared to $27.7 billion.
Chainlink price also soared after a lengthy Forbes article highlighted how companies were using its network to grow their businesses in the era of A and blockchain. It highlighted the role of its oracles as a way of creating a unified golden record around corporate actions.
LINK also jumped after its CEO appeared on CNBC and talked about how Donald Trump’s policies on deregulation could be “extremely bullish for our industry.”
LINK Price Could Surge Soon
Crypto analysts are optimistic that Chainlink price will rebound, and possibly retest the year-to-date high of $19.8.
In an X post, Perpetual Trading noted that the coin had formed a falling wedge pattern on the weekly chart. In most cases, this is one of the most bullish chart patterns.
On the daily chart, we see that Chainlink jumped and retested the important resistance level at $12.97. This was a key level since it was the highest swing in September and August 2. It was also the upper side of the ascending triangle pattern.
LINK price is also approaching the 50% Fibonacci Retracement level at $13.6. It has also jumped above the 200-day moving average.
Therefore, a clean break above the resistance at $13, will point to more gains towards the 61.8% retracement point at $15, which is 15% above the current level. Another break above that level will bring the year-to-date high of $19.20 into view. This target is about 50% above the current level.
The bullish LINK prediction view will become invalid if the price drops below the ascending trendline at $12. A drop below that level will open the door for more sell-off to $10.
Frequently Asked Questions (FAQs)
While BlockTower did not buy LINK, its purchase of other DeFi cryptocurrencies is a sign that they are bullish on decentralized finance. Chainlink is a major player there as a top provider of tokens.
Chainlink has formed an ascending triangle pattern, pointing to more gains to $15, its highest swing in July. More gains above that level will lead to more gains to the year-to-date high of near $20.
Chainlink has numerous positive fundamentals, including its role in decentralized finance and real-world asset tokenization.
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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-preps-50-surge-blocktower-defi-tokens/
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