The Chainlink network has grown to a major tokenization platform for real-world assets fueled by institutional investors seeking to tap into the Web3 ecosystem.
Amid the notable crypto bearish outlook, Chainlink (LINK) price has continued to shed against the US dollar and Bitcoin (BTC) in the past few months. The mid-cap altcoin, with a fully diluted valuation of about $10.5 billion and a daily average traded volume of around $266 million, has been trapped in a falling trend since February.
As a result, LINK price has been retesting last year’s bullish breakout from a macro horizontal consolidation. From a technical standpoint, LINK’s price against the US dollar has been forming a falling wedge, which is often followed by a major bullish uproar.
However, LINK price could drop towards the support level around $8.7, which coincides with the 0.786 weekly Fibonacci Retracement, in the coming weeks before rebounding to its all-time high (ATH). Moreover, the highly anticipated interest rate cuts in the United States this month could easily turn into a sell-the-news event before the return of the macro bullish sentiment in the fourth quarter.
In LINK’s weekly time frame, the Relative Strength Index (RSI) has been forming a falling wedge pattern, which has already dropped below the 50 percent level, suggesting the midterm bears are in control.
However, a consistent close below the support range between $8 and $9.4 will push the altcoin price towards last year’s lows of about $4.9 in the near term.
Chainlink Network Grows Exponentially
Amid the mainstream adoption of digital assets and Web3 protocols, Chainlink has grown into a major player in the past years. Furthermore, Chainlink network provides Web3 developers with reliable crypto price oracles, used in securing thousands of smart contracts on a daily basis.
The Chainlink team has also developed the Cross-chain Interoperability Protocol (CCIP) to enable secure and scalable inter-blockchain communication. Already, Chainlink’s CCIP has been integrated with several top-tier layer one blockchains led by BNB Chain, Ethereum (ETH), Arbitrum (ARB), and Polygon (MATIC), among others.
In its latest web3 development, Chainlink network inked a strategic partnership with Suho.io, a blockchain financial tech company, to develop tokenized assets and Central Bank Digital Currency (CBDC) use cases. The two entities intend to enable the mainstream adoption of digital assets in emerging markets in Asia including South Korea, Japan, and Thailand.
“Chainlink has established itself as the industry standard solution for tokenization use cases,” Park Ji-soo, CEO of Suho.io, noted. “Through this strategic partnership, we expect to collaborate extensively with Chainlink in the Asia region, helping to meet the needs of financial institutions and form fundamental solutions for the digital asset industry.”
The Chainlink network has enabled over $15 trillion in total transaction value since its inception without any security breach. As a result, the network has been trusted by dozens of institutional investors including major financial institutions in the United States.
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