LINK price is on the verge of confirming a historically bullish pattern, which could send the altcoin’s price above $18.
Key point:
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Convergence of TradFi and DeFi could propel LINK past $18 and start a new uptrend.
At the RWA Summit Cannes, Nelli Zaltsman, JPMorgan Kinexys’ head of blockchain payments innovation, said that decentralized finance and traditional finance are converging rapidly. The banking giant, Chainlink (LINK), and Ondo Finance (ONDO) recently completed a crosschain Delivery versus Payment (DvP) test transaction, involving a permissioned payment network and a public testnet.
Could traditional institutions moving onchain propel LINK higher? Let’s analyze the charts to find out.
LINK price prediction
LINK has been consolidating inside a large range between $10.94 and $18 for the past several months.
The LINK/USDT pair has risen close to the $18 overhead resistance, which is likely to attract strong selling by the bears. If the price turns down from $18 but finds support at the 20-day exponential moving average ($14.85), it shows a positive sentiment. That increases the possibility of a break above the $18 level. If that happens, the pair will complete a double-bottom pattern, which has a target objective of $25.06.
Instead, if the price turns down sharply from $18 and breaks below the 20-day EMA, it signals that the range-bound action may continue for a few more days.
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The bulls have been arresting the pullback at the 20-EMA on the 4-hour chart, indicating that every minor dip is being purchased. The pair could turn down from $18, but a rebound off the 20-EMA suggests that buyers remain in control. That enhances the prospects of a break above the overhead resistance.
This positive view will be invalidated in the near term if the price turns down sharply and breaks below the 50-simple moving average. The pair may then slump to $14.70 and later to $14.
This article does not contain investment advice or recommendations. Every investment and trading move involves risk, and readers should conduct their own research when making a decision.
