After a week of price increases, Chainlink [LINK] appears to have entered a consolidation zone. Nevertheless, the token successfully broke through a multi-year pattern.

Although the next few days may be quiet, the overall market momentum could drive LINK to new highs.

Revolutionizing cross-chain transactions with privacy tools

To address the long-standing issue of cross-chain data confidentiality, Chainlink has launched two main products: CCIP Privacy Trading and Blockchain Privacy Manager. These two products will collectively help achieve secure, private, and seamless cross-chain transactions while ensuring regulatory compliance, which is an important factor for banks.

Currently, Chainlink's privacy tools have been tested in real-world applications. Firstly, the Australia and New Zealand Banking Group (ANZ) has agreed to trial these features under the Monetary Authority of Singapore's Guardian project. This will explore cross-chain settlement of tokenized real-world assets. The early collaboration between Chainlink and ANZ has already shown that tokenizing and securely transferring RWAs is very likely, highlighting the platform's practical real-world utility.

DECO Sandbox: Empowering developers and institutions

To complement its privacy suite, Chainlink has created the DECO Sandbox, a testing environment for financial institutions and Web3 developers. The DECO Sandbox has preconfigured use cases for zkTLS Oracle, aimed at achieving privacy-preserving data verification.

The new products allow institutions to verify critical data such as identity and proof of funds without disclosing sensitive information. The reduction of compliance costs and the enhancement of data security make DECO Sandbox an excellent facilitator for institutional clients looking to adopt blockchain integration.

Analysis of the LINK daily chart reveals the emergence of a bullish symmetrical triangle pattern in 2021. Since then, LINK's price has been consolidating until a breakout occurred a few days ago. After the breakout, LINK's upward momentum has weakened.

But this is just the beginning of a new chapter. The breakout indicates that LINK has the potential to form a bullish flag pattern.

If this happens and market conditions align, LINK could retest its ATH and reach $50 in the coming months.

Breaking the bullish flag during the altcoin season could trigger this massive rebound. In fact, the latest data suggests that the altcoin season may arrive sooner than expected.

And as BTC's dominance declines below key support levels, the altcoin season index has surged, suggesting that altcoins may shine starting in December!

What is there in the short term?

Since the expectation that Chainlink will reach $50 is a long-term assumption, AMBCrypto examined the indicators for short-term expectations.

It is worth noting that LINK's exchange balance has sharply increased, indicating that its selling pressure is rising—this is a sign of price adjustment.

Its NVT ratio has also surged, which typically indicates that the asset is overvalued, further suggesting a pullback. However, investors need not worry, as such price adjustments often happen before the formation of a flag.

Interestingly, despite Chainlink's metrics showing a price drop, its actual losses have significantly decreased. This development can be attributed to the token's past price increases, which prompted more investors to take profits.

Next, we looked at the daily chart of the token to identify short-term support and resistance areas. We found that at the time of writing, Chainlink is testing its support level at $18.66.

Successful testing could still lead to LINK rising in the coming days; in any case, the token has a high probability of forming a bullish flag pattern.

If the market supports the bullish structure forming for Chainlink, LINK could rise to $50. However, a short-term pullback can be expected first.