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LINK price is approaching a critical resistance level, signaling a potential breakout that could elevate the altcoin above $18, driven by the merging forces of traditional finance and decentralized finance.
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The recent successful crosschain Delivery versus Payment (DvP) test involving JPMorgan, Chainlink, and Ondo Finance highlights growing institutional adoption and integration of blockchain technology.
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According to Nelli Zaltsman, JPMorgan Kinexys’ head of blockchain payments innovation, the rapid convergence of TradFi and DeFi is creating new opportunities for assets like LINK to gain momentum.
LINK price nears $18 amid TradFi and DeFi convergence, supported by institutional blockchain tests and technical patterns signaling a bullish breakout potential.
LINK Price Prediction: Technical Analysis and Market Sentiment
LINK has been trading within a well-defined range between $10.94 and $18 for several months, consolidating as market participants await a decisive move. The current approach toward the $18 resistance level is critical; a successful breakout here could confirm a double-bottom pattern, a bullish technical formation that often precedes significant upward trends.
Should LINK fail to breach $18 and instead retrace, the 20-day exponential moving average (EMA) at approximately $14.85 serves as a key support level. Holding above this EMA would indicate sustained buying interest and positive market sentiment, increasing the likelihood of another attempt to break resistance. Conversely, a drop below this EMA could extend the range-bound trading, signaling indecision among investors.
Institutional Adoption and Crosschain Innovations Boosting LINK’s Prospects
The recent crosschain Delivery versus Payment (DvP) test transaction, conducted by JPMorgan, Chainlink, and Ondo Finance, represents a significant milestone in bridging traditional financial systems with decentralized networks. This test involved a permissioned payment network and a public blockchain testnet, demonstrating the feasibility of secure and efficient settlement mechanisms across different platforms.
Nelli Zaltsman emphasized that this convergence is accelerating, with traditional financial institutions increasingly exploring onchain solutions to enhance transparency and reduce settlement risks. Such developments could catalyze demand for Chainlink’s oracle services, thereby positively impacting LINK’s valuation.
Chart Insights: Support Levels and Resistance Challenges
Analyzing the LINK/USDT daily and 4-hour charts reveals that the bulls have consistently defended the 20-EMA, preventing deeper pullbacks and maintaining upward momentum. This persistent buying pressure at key support levels suggests confidence among traders and investors.
However, the $18 resistance remains a formidable barrier. A failure to overcome this level could trigger profit-taking and a potential decline toward the 50-simple moving average (SMA). A break below the 50-SMA would be a bearish signal, possibly pushing prices down to $14.70 or even $14, extending the consolidation phase.
Market Outlook and Potential Scenarios for LINK
Should LINK successfully break above $18, the double-bottom pattern target of approximately $25.06 becomes a realistic objective, marking a significant upside from current levels. This scenario would likely attract additional institutional and retail interest, reinforcing the bullish trend.
Alternatively, sustained resistance at $18 combined with a failure to hold key moving averages could result in continued sideways trading, reflecting uncertainty amid broader market conditions. Traders should monitor volume and price action closely to gauge the strength of any breakout or breakdown.
Conclusion
LINK’s price action is at a pivotal juncture, influenced by both technical patterns and fundamental developments in blockchain integration with traditional finance. The convergence of TradFi and DeFi, exemplified by JPMorgan’s collaboration with Chainlink, underscores the growing institutional confidence in blockchain solutions. While the $18 resistance level poses a challenge, a successful breakout could propel LINK toward new highs, making it a critical asset to watch in the evolving crypto landscape.
