Dec 3, 2024
6thTrade
Chainlink (LINK) has significantly outperformed the broader crypto market on December 3, posting an impressive 27% daily gain after announcing a strategic collaboration with an EU-based firm to launch a tokenized asset settlement system. The token has surged by 50% over the last week and 125% over the past 30 days, marking a major bullish rally.
LINK Price Hits 2-Year High Amid Price Surge
On December 3, LINK’s price experienced a dramatic rise, increasing by as much as 45%, from a low of $18.58 to a two-year high of $26.92. This move was accompanied by a surge in trading activity, with LINK's spot trading volumes surpassing $8.6 billion—up 271% from the previous day. Currently, Chainlink’s market capitalization stands at $15.52 billion, securing its position as the 15th largest cryptocurrency by market cap.
Partnership with 21X to Launch EU-Regulated Tokenized Securities Market
The surge in LINK’s price follows growing excitement within the crypto community regarding the partnership between Chainlink and 21X, a platform focused on tokenized money and securities. Together, they aim to launch Europe’s first EU-regulated tokenized securities market.
Chainlink will supply its Cross-Chain Interoperability Protocol (CCIP), enabling 21X to settle assets from multiple blockchains. The collaboration will also facilitate the integration of real-time market data and support the transfer of tokenized assets, such as stablecoins, across various chains.
Max Heinzle, the founder and CEO of 21X, expressed his enthusiasm for the partnership, stating, “By leveraging Chainlink’s technology, we will offer a secure and efficient platform for trading and settlement on a public permissionless blockchain.”
Surge in Chainlink Network Activity
As the price of LINK continues to rise, so does the activity on the Chainlink network. According to market intelligence firm CryptoQuant, the number of daily transactions on Chainlink jumped from 6,437 on November 29 to a two-year high of 24,901 by December 2—a 286% increase. Active addresses also surged by 179% during the same period, indicating growing adoption of Chainlink’s ecosystem and increased demand for LINK.
Technical Analysis and Future Price Targets
Despite the recent surge, technical indicators suggest that LINK might be nearing the end of its current momentum. The Relative Strength Index (RSI) is in the overbought zone at 79, signaling that upward pressure may be waning. However, the appearance of a "golden cross" on the daily chart—a bullish technical pattern where the 50-day moving average crosses above the 200-day moving average—suggests that the rally could continue.
The breakout above the $19 level and the completion of a U-shaped recovery pattern has set LINK on a path toward further gains. If LINK can maintain momentum above $25, it could potentially rally to the $30 target, representing a 21% gain from its current price.
Bullish Sentiment: Price Could Exceed $50 in 2025
Some market experts are even more optimistic about Chainlink’s prospects. Pseudonymous trader Satoshi Flipper, for example, believes that with the price now breaking through the $22 barrier, LINK could soon reach levels above $50. "It's $LINK SEASON, now we do $22 --> $52," he remarked.
With the continued adoption of Chainlink's technology and its growing role in the decentralized finance (DeFi) ecosystem, the outlook for LINK remains strong, and some analysts believe its price could continue to rise significantly in the coming months and years.
Conclusion
Chainlink's recent partnership with 21X, coupled with a surge in network activity and bullish technical indicators, has propelled LINK to new heights. While the price may experience some consolidation in the short term, the overall market sentiment and the ongoing adoption of Chainlink's cross-chain technology point to further growth. With a potential target of $30 in the near term and even higher projections for 2025, Chainlink’s bullish momentum shows no signs of slowing down.