LINK price jumps 10% as Chainlink races toward tokenization of funds

Source Fxstreet
May 17, 2024 02:00
  • Chainlink network has completed tests with US banking giants to accelerate the tokenization of funds.
  • JPMorgan, Franklin Templeton, Invesco, and BNY Mellon are among the ten participating firms.
  • Network cofounder Sergey Nazarov says large market players are coming together to leverage blockchains, smart contracts, and Oracle networks.
  • Chainlink price is up 10% as LINK bulls flock to the scene

Chainlink (LINK) price has remained range-bound for a while, stuck between the $16.00 roadblock to the upside and $13.08 to the downside. However, in light of recent revelations, the token, which powers the verifiable web of the decentralized computing platform, may have further upside potential.

Also Read: Chainlink co-founder expects ETF narrative to play into other coins

Chainlink finalizes tests with DTCC and US banking giants

In its pursuit to accelerate the tokenization of funds, the Chainlink network has completed its planned tests with the DTCC and ten partnering firms. The partnering firms are American Trust Custody, Edward Jones, JPMorgan, American Century Investments, Franklin Templeton, MFS, US Bank, BNY Mellon, Invesco, and State Street.

The test reiterated the ability of Chainlink’s Cross Chain Interoperability Protocol (CCIP) to serve as an abstraction layer between the DTCC and the many blockchains needed for integration now and in the future.

In an interview, Chainlink co-founder Sergey Nazarov says that this test is important, showing “large market participants are coming together to use blockchains, smart contracts, and Oracle networks together to solve very tangible immediate problems.”

Chainlink price is up 10% in the past 24 hours, riding the wave of this news as well as the broader bullish sentiment as Bitcoin price remains above $65,500. With the Relative Strength Index (RSI) sustaining higher lows into the region above the mean level of 50 and the Moving Average Convergence Divergence (MACD) holding above the orange band of its signal line, bullish sentiment is growing in the LINK market.

The yellow nodes or spikes on the volume profile also show that bullish hands are currently interacting with the Link price, which could steer further upside potential. If the LINK bulls are able to push the Chainlink price above the $16.863 resistance level, a flip of this roadblock into support will promote more buy orders.

However, LINK would only be attractive to buy after the price records are stable, close to $18.320. In a highly bullish case, the gains could see the Chainlink price extend a neck higher to the $20.702 roadblock.

LINK/USDT 1-day chart

Conversely, if traders cash in on the gains made, which has happened multiple times before leading to consolidation, the Chainlink price would topple. While a decisive candlestick close below $13.080 would be concerning,  only a low below the $11.788 support level would invalidate the bullish thesis. 

Disclaimer: For information purposes only. Past performance is not indicative of future results.
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