Chainlink's price surged about 15% on Thursday, reaching levels not seen since mid-November 2021. The rally was fueled on Thursday by Donald Trump-backed World Liberty Financial, which bought 41,335 Link tokens worth $1 million. Chainlink announced a partnership with Emirates NBD Banking Group, and Link's CCIP was launched on the Ronin network on Wednesday. The technical outlook suggests a continued rally towards a three-year high of $38.
Chainlink (LINK) price extended its gains, rising more than 15% on Thursday, reaching levels not seen since mid-November 2021. The main reason for the rise is the purchase of $1 million worth of LINK tokens by a Trump-backed DeFi platform. In addition to World Liberty, other announcements include a partnership with Emirates NBD Banking Group and the launch of Link's Cross-Chain Interoperability Protocol (CCIP) on the Ronin network.
The technical outlook suggests a continued rally towards a three-year high of $38.
Why is Chainlink going up today?
Chainlink's price rose more than 15% on Thursday after surging about 38% last week. The main reasons for the recent price hike are:
Second, banking group Emirates NBD announced on Wednesday that Chainlink has become the fifth trustee of its Digital Asset Lab. Third, Chainlink's Cross-Chain Interoperability Protocol (CCIP) went live on the Ronin network, a major Web3 gaming ecosystem. CCIP bridge lanes between Ethereum, Ronin, and Base allow users to transfer tokens of their choice between these ecosystems. This also lays the foundation to enable more lanes and even more chains. Finally, on Tuesday, Coinbase's Project Diamond integrated the Chainlink standard to accelerate the adoption of digital assets. Institutions can leverage Chainlink to manage the entire lifecycle of tokenized assets on the Project Diamond platform.
Technical Outlook: LINK Could Extend Rise towards $38
Chainlink's weekly chart shows that last week's price action was decisively above $21.54, which is 50% from the November 2021 high of $38.31 to the June 2023 low of $4.76. This is a level that coincides with the price retracement level of . It found support this week, rebounding from $21.54, and traded higher on Thursday near $27.72.
If LINK continues its upward momentum, the rally could widen to retest the November 2021 high of $38.31.
The Relative Strength Index (RSI) on the weekly chart is 77, indicating extremely overbought conditions and suggesting the risk of a correction is increasing. Traders should be careful when adding to long positions as there is an increasing likelihood that the price will fall.
Still, the RSI is very stable, so it is possible that the rally continues and the indicator moves higher or even stays within the overbought levels. If the RSI decisively breaks out of overbought territory, a clear sell signal will occur.
LINK/USDT weekly chart
