Summary
- The price of LINK has dropped by about 18.8% from the highest record reached.
- Investors still have an interest in this digital asset as more institutions continue adding it to their holdings.
Chainlink may have shot up by 10% earlier this week, but prospects of a rally towards the record-high $37 seemed unlikely today. The LINK/USD pair was hovering around $30 but has recently developed significant traction from renewed institutional interest. This is likely to provide momentum for LINK price upswing.
Institutional adoption and new partnerships
LINK has kept up its appeal to institutions, driven by increased demand for digital assets in the market. Earlier this week, LINK was among the five digital currencies added by Grayscale to its trust. The firm has been among the leading institutional adopters of digital assets and currently has about $42 billion worth of these assets.
Similarly, BigoMex has recently added new coins to its upcoming trading sector contract. The digital currencies added include DOGE, DOT, LINK, etc. This is yet another instance of the emerging popularity of alternative exposure to crypto-assets.
Chainlink has also announced that it will be partnering with both Illuvium and TrueFi. The partnership is a statement of intent by Chainlink to focus its attention on the increasingly popular Non-Fungible Tokens (NFT) segment as well as offering affordable loans.
The partnership with Illuvium will focus on promoting the fair distribution of scarce-edition promo NFT to users following a forthcoming yield farming initiative. This is aimed at making it competitive in NFT. On the other hand, TrueFi’s partnership with Chainlink will provide access to loans without collateral.
Elsewhere, Chainlink has also teamed up with DuckDAO to improve efficiency in the digital assets’ environment. Following integration with LINK, DuckDAO will provide advisory services on fundraising and strategy, while LINK will provide the platform.
As part of efforts to address flexibility challenges, Chainlink is currently running live on Arbitrum. Under the arrangement, Arbitrum is to lower the costs of operations and provide more flexibility, with no security risks. Arbitrum will also enhance performance in the smart contracts segment and support the accommodation of more users.
Also, Aave has launched a platform for providing liquidity by allowing users on Balancer and Uniswap to deposit tokens. In return, depositors will be able to borrow a wide range of other tokens. The value of the tokens will be accumulated using Chainlink.
The Chainlink network has also gotten a boost from Mayor Hillary Schieve. The Reno mayor is considering a hackathon based on LINK for possible ideas to help revamp the government. Her support for LINK has grabbed the attention of the Chainlink network. She has announced that she will team up with CEO Sergey Nazarov to create a GovTech Prize for the Chainlink hackathon.
LINK’s potential performance in the coming days can be summarized based on a recent assessment by Ki Young Ju, the CEO of CryptoQuant. He stated that LINK’s value is not appreciated enough and that it is underestimated in the digital market, going by demand and supply.
LINK/USD technical outlook
LINK will find support at $29.6, and the second support level will be established at $30.04. LINK will encounter resistance at $31.5 and $31.8.
The Relative Strength Index (RSI) for the LINK/USD pair is above the 55 mark. This is an indication of the possibility of a strong movement in the action of the price.
