- Summary:
- Chainlink price rose sharply on Thursday as its rising adoption by institutional investors drew in Trump-backed World Liberty Financial.
Chainlink price skyrocketed on Thursday as its value rose by more than a quarter to hit three-year highs of $29.45. LINKUSD was up by 25.14% at the time of writing, on news that Trump-backed World Liberty Financial (WLF) had spent $12 million to stash up its crypto portfolio, with the purchase including LINK. The transaction was made through a multi-sig wallet and also saw WLF buy ETH and AAVE.
Why is Chainlink gaining prominence?
Chainlink has built a reputable decentralised finance platform leveraging blockchain technology and oracles to offer a smooth interface with the traditional finance ecosystem. It has attracted multiple institutional giants, including UBS, BNP Paribas, Swisscom, Fidelity, and Google Cloud, among others. In total, there are 2,276 projects on the Chainlink ecosystem.
World Liberty Financial’s inclusion of LINK in its portfolio has raised expectations that more institutions could line up to purchase it. If that happens, it could raise the coin’s demand significantly and potentially add propulsion to LINK price upside. Meanwhile, Chainlink’s Open Interest perpetual contract shot up by 55.53% in the last 24 hours. This signals growing investor confidence in the asset’s performance in the coming down.
According to CoinMarketCap, more than 70% of LINK investors are classified as “holders”. These are investors who have held the coin for more than a year. The high percentage of holders signals investor confidence that Chainlink price is likely to rise in the future. That will provide support to LINK’s upside momentum.
Chainlink price prediction
Chainlink price pivots at $27.50 and the buyers are in control as shown by the RSI indicator. With that, LINK will likely encounter the first resistance at $28.65. However, a stronger momentum could breach that barrier and test the second resistance at $29.47. A break above the level could clear the path to test $30.
On the other hand, a move below $27.50 will favour the sellers to take control. In that case, LINK could move lower to the first support at $27.05. A stronger downward momentum will break below that level and invalidate the upside narrative. Meanwhile, the decline could extend to test the second support at $26.25.
