Here’s why Chainlink price is soaring today
Chainlink price rebounded by over 14% on Wednesday, reaching its highest level since February 5.
Chainlink (LINK) token rose to a high of $9.35, up by over 30% from its lowest level this month. This rebound has brought its market capitalization to over $6.6 billion.
Top reasons why the LIN price is soaring
Chainlink price rose as the crypto market rally resumed, with Bitcoin and most altcoins being in the green. Bitcoin jumped to $67,000, while the market capitalization of all tokens rose by over 5% to over $2.33 trillion.
LINK token is also benefiting from sustained demand from American investors. Data compiled by SoSoValue shows that spot LINK ETFs have accumulated over $10 million in assets this month, bringing their cumulative total to over $85 million.
These funds now have over $71 million in assets, with Grayscale’s GLNK having $61 million. Bitwise’s CLNK has $9.75 million in assets. In contrast, spot Bitcoin and Ethereum ETFs have shed billions of assets in the past few months.
Chainlink price is also rising after integrating with Canton, one of the biggest players in the real-world asset tokenization industry. The integration introduces data streams on equities, smart data, proof of reserves, and CCIP.
Other recent integrations in the network are Robinhood, Arc, the layer-1 network built by Circle, World, and MagaEth.
Meanwhile, Chainlink has continued to accumulate LINK tokens as part of its Strategic LINK Reserves. Data shows that these reserves have jumped to over 2.17 million currently worth over $19.7 million. These purchases will continue growing in the coming years as Chainlink plans to use its off-chain fees to accumulate more tokens.
Still, the main risk is that the ongoing Chainlink price rebound is a dead-cat bounce, also known as a bull trap. A bull trap is a situation where an asset in a freefall bounces back and then resumes the downtrend.
Chainlink price prediction: Technical analysis
The daily timeframe chart shows that the LINK price has remained in a bear market in the past few months despite its strong fundamentals.
It dropped from a high of $27 to the current $9.4. It has remained below all moving averages and the key support level at $10, which was its lowest level on April 6 last year.
LINK price remains below the 50-day and 100-day Exponential Moving Averages and the Supertrend indicator. Also, it formed a small double-bottom pattern at $8.036 and a neckline at $9.18.
Therefore, the most likely scenario is where it remains under pressure in the coming weeks as risks, including the potential attack on Iran, remain. A complete rebound will be confirmed if it moves above the key resistance level at $10 and flips the short and medium-term moving averages.
