Chainlink (LINK) Shows Potential Bullish Recovery Signs, Driven by RWA Tokenization in Global Markets

Despite the current overall bearishness of the cryptocurrency market, Chainlink (LINK) price has continued to fall over the past few months, performing weakly against the US dollar and Bitcoin (BTC). As a mid-cap altcoin with a market value of approximately $10.5 billion and an average daily trading volume of approximately $266 million, LINK has been in a downtrend since February. As a result, LINK price is retesting last year's bull highs from the macro-level consolidation range.

From a technical perspective, LINK's price action against the US dollar has formed a falling wedge, which often indicates that a major bull rally may be ahead. However, LINK price may fall to support at approximately $8.7 in the coming weeks, which coincides with the weekly Fibonacci retracement level of 0.786, and then may rebound to its all-time high (ATH). In addition, the much-anticipated interest rate adjustment in the United States this month may turn into a "buy the news and sell the fact" event, and the market may sell off before the macro bullish sentiment returns in the fourth quarter.

On LINK’s weekly chart, the Relative Strength Index (RSI) has formed a falling wedge and has fallen below the 50% level, indicating that medium-term bears dominate the market. However, a sustained close below the $8-$9.4 support range could push LINK prices towards last year’s low of $4.9 in the short term.

Exponential Growth of the Chainlink Network

Chainlink has grown into a significant player over the past few years as mainstream adoption of digital assets and Web3 protocols has increased. In addition, the Chainlink network provides Web3 developers with reliable cryptographic price oracles that are used daily to secure thousands of smart contracts. The Chainlink team has also developed the Cross-Chain Interoperability Protocol (CCIP) to enable secure and scalable cross-blockchain communication. Chainlink’s CCIP has been integrated with multiple top Tier 1 blockchains such as BNB Chain, Ethereum (ETH), Arbitrum (ARB), Polygon (MATIC), and more.

In the latest Web3 development, the Chainlink network has signed a strategic partnership with blockchain fintech company Suho.io to jointly develop a blockchain-based oracle.