Chainlink (LINK) price bounced back on Monday as investors bought the dip and cheered the recent ecosystem news. The coin soared to a high of $6.63, the highest level since August 17th. It has jumped by more than 15% from the lowest level this year.
A leader in tokenizationChainlink is the biggest oracle in the blockchain industry. Its main role is to connect off-chain data to the on-chain environment. As a result, the network powers some of the biggest networks in the industry like Uniswap and Aave.
Chainlink is also taking a big role in the tokenization industry, which investors believe will continue growing in the coming years. Many large companies have already started to embrace the sector.
For example, I recently wrote that London Stock Exchange (LSE) was considering moving to the industry. Its goal is to use tokenization to deliver its products and services to a wider pool of people.
Last week, ANZ, one of the biggest banks in Australia, completed its first transaction with tokenized assets. It used Chainlink’s Cross-Chain Interoperability Protocol (CCIP) and its A$DC stablecoin.
In a separate statement on X, Chainlink said that the Deposit Trust & Clearing Corporation (DTCC) was also considering using CCIP to unlock tokenized asset interoperability. DTCC is a major player in finance that handles over $2 quadrillion every year.
The Depository Trust & Clearing Corporation, the world’s largest securities settlement system processing $2+ quadrillion annually, is exploring Chainlink #CCIP to unlock tokenized asset interoperability.@The_DTCC’s Stephen Prosperi on the collaboration: https://t.co/DyqUc0miFH
— Chainlink (@chainlink) September 15, 2023Chainlink is also working with Swift, a leading organization that handles billions of dollars every day. In a recent statement, Swift said that working with Chainlink and several banks had demonstrated that it can provide a single point of access to multiple networks using existing infrastructure.
Therefore, analysts believe that Chainlink has the potential to become a leading player in finance and tokenization. This means that it can survive even as other sectors in blockchain like NFTs recoil.
Chainlink price prediction
The daily chart shows that the LINK price formed a double-bottom pattern at $5.73 this month. In price action analysis, this pattern is one of the most accurate bullish signs in the market. It has now moved above the key resistance level at $6.45, the neckline of this double bottom pattern.
The coin has also moved above the 25-day and 50-day moving averages while the Relative Strength Index (RSI) has pointed upwards. Therefore, Chainlink price will likely continue rising in the coming days as buyers target the key resistance at $7.91, the highest level on August 10th.
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