The renowned cryptocurrency Chainlink, faces an intriguing split between an optimistic upward trend and a staunch top-end resistance put forth by profit-yielding traders, as pointed out by a noted analyst from platform X. For those holding a bullish stance to stockpile and prolong the upward trajectory, the existing surplus must first be whittled down, carefully carving a path for heightened gains beyond the immediate liquidation points.
Studying the activity regarding the Chainlink’s price captured in the daily chart, it is crystal that the power resides with the buyers. The bull traders have demonstrated steadfast determination since the coin hit rock bottom in September 2023.
From that period, LINK has doubled its value, especially making an impressive leap over the psychological threshold of $20. At the time of this press release, the reins remain tightly held by the buyers, who have harnessed the winds of trend to sway back in their favor, despite the market-wide cool down spurred by Bitcoin’s stumble the past week.
With the boundaries of LINK’s broader range firmly set at about $17.9 on the lower spectrum and $21.7 on the top range, the market shows signs of activity even after its accelerated expansion since September. This hints at traders switching gears, decelerating the upward trend, evidenced by their exiting stance in their positions.
Further unwrapping the riddle of the recent downtrend, the cited analyst drew our attention to the illuminating on-chain data. Ostensibly, the data paints a vivid picture of investors reaping the rewards from the notable expansion.
Consequently, before the LINK bulls can rally enough vitality to propel the cryptocurrency to new heights beyond $21.8 in 2024, the market must first consume the overflow of supply.
Notwithstanding these transient obstacles, bullish shareholders of Chainlink are pinning their hopes on the widespread acceptance of Chainlink Cross-Chain Interoperability Protocol, known as CCIP, to stimulate demand. CCIP is an indispensable cog in the machinery of blockchain interoperability, serving as a bridge for secure communication between smart contracts of conjoined blockchains and external data sources.
The implementation of CCIP runs deep, with firms ranging from Metis, a second-tier scaling resolution for Ethereum, to Circle, the creator of USDC, a stablecoin, leveraging this resource to enhance interoperability.
Recent statistics point to a steep climb in CCIP’s revenue, alluding to a progressive acceptance of this multi-chain linking platform. As per the information sourced from Dune Analytics on March 26th, CCIP’s contribution to the revenue coffers has crossed the $484,000 mark. With continued adoption from various protocols, businesses, and blockchains, these numbers only promise to surge further.
Despite this, LINK, surging past March’s peak and making fresh zeniths in 2024, hinges on the performance of other cryptos, including the heavyweight Bitcoin and Ethereum. A rebounding Bitcoin could prove to be the magnetic force drawing more capital, subsequently elevating altcoins, including the ever-potential LINK.
