I have been keeping an eye on LINK recently, and today the price of LINK has risen by 7%, making it one of the best performers among the top 30 cryptocurrencies by market capitalization. The current price has exceeded $12, which is undoubtedly good news for this once-ignored token, especially since its performance was not satisfactory from the end of 2023 to March.
LINK Price Analysis
Looking at the chart, Chainlink (LINK) showed a clear downward trend between March and the end of September 2024, with prices continuing to fall. However, LINK recently broke out of the descending channel at around $10.50, showing a potential bullish trend.
After breaking out, LINK is testing the $12.15 resistance level, with the next major hurdle to face being the 200-day moving average (around $14.30). While this breakout suggests a possible trend reversal, LINK needs to maintain an upward trend to confirm the change. The current relative strength index (RSI) is close to 70, showing an increase in buying pressure.
Chainlink recently unlocked 18.75 million LINK tokens (~$215 million), most of which (18.125 million) have been sent to Binance. This unlocking has been happening every three months since August 2022, and 145.75 million LINK (worth $1.5 billion) has been unlocked so far. Despite these large unlocks, the price of LINK has shown resilience, even rising after some unlocks. There are still 372.75 million LINK (worth ~$4.27 billion) to be unlocked, and future unlocks may still affect the token price.
Chainlink’s Role in the RWA Trend
Chainlink co-founder Sergey Nazarov shared his views on the growth trend of real-world assets (RWA) on social media. He said: "I am increasingly convinced that the RWA trend is bringing the traditional financial system to the blockchain in a way we have never seen before. Some of the world's largest financial institutions are already tokenizing funds on the chain, and this trend is in its early stages."
Nazarov emphasized the importance of Chainlink in this space: “Chainlink already supports many of the top RWAs, with a focus on processing data and cross-chain needs far beyond the initial needs of DeFi.”
He mentioned that the potential scale of this trend could be huge: "The trillions of dollars of assets flowing into the RWA format could surpass the total market capitalization of cryptocurrencies. Our industry may soon be defined more by RWAs, just as the Internet was once primarily about email but has since been replaced by more information technology applications such as e-commerce."
Nazarov concluded by noting the possible impact this trend could have on the wider crypto ecosystem: “The value/RWA flowing into blockchains will also drive the DeFi boom, and many of these assets will be placed in DeFi for higher yields.”
As the RWA trend develops, the secure and reliable data infrastructure provided by Chainlink may become increasingly important, which may be one of the reasons for the recent increase in LINK price.
