Chainlink price sentiment hints 93% after payment abstraction launch

Chainlink price has sold off over the past three months, leading to a $10 billion wipeout as its market cap fell from $18 billion to $8.8 billion.

Chainlink (LINK) crashed to $13.52 because of the ongoing sell-off in the cryptocurrency industry. Bitcoin (BTC), which sets the tone in crypto, dropped from $109,300 in January to $82,000.

Still, LINK has several catalysts that could boost its price in the coming weeks. According to CoinMarketCap, it has a bullish community sentiment of 93.2%, indicating that many of CMC’s users remain optimistic about the coin. That score is significantly higher than Jupiter (JUP), which ranks second with a sentiment score of 88%.

Chainlink has also continued to enhance its network in 2024. Developers recently announced the launch of Chainlink Payment Abstraction, a cross-chain-enabled payment system designed to reduce friction within the ecosystem.

This solution allows users to pay for Chainlink services using alternative assets like stablecoins, which are automatically converted into LINK. The conversion is powered by Chainlink Automation, price feeds, and a decentralized exchange. Initially, this abstraction will focus on converting fees generated by the Chainlink Smart Value Recapture mechanism.

Chainlink is also positioned to benefit from the growth of technologies like decentralized finance and real-world asset tokenization. It has already established partnerships with major institutions such as Swift, the Depository Trust & Clearing Corporation, Google, Oracle, BNY Mellon, and JPMorgan.

Chainlink price technical analysis

The weekly chart shows that the LINK price bottomed at $11.91 this month. Its lowest point this month was a crucial level since it coincided with its lowest swings since July 2023. 

Chainlink has formed a giant megaphone pattern, a common bullish formation. It has also reached a major support/resistance pivot on the Murrey Math Lines.

Therefore, the coin will likely bounce back and potentially retest the ultimate resistance point at $25, an 85% gain from current levels. However, a drop below the lower boundary of the megaphone at $11.90 would invalidate the bullish outlook.