LINK price has begun to rally big time. This is after a large partnership with Ronin Network, one of the biggest names in the Web3 gaming ecosystem.
Chainlink’s Cross Chain Interoperability Protocol (CCIP) toulation heralds a major forward step in facilitating cross-chain interactions and asset migration.
Catalyst for Surge: Chainlink and Ronin Partnership
Integration of Chainlink’s CCIP on Ronin Network paves the way to a new level of blockchain interoperability.
Chainlink’s technology has been chosen by Ronin to power cross-chain transactions. These back popular worldwide Web3 gaming applications such as Axie Infinity.
A community vote in the Ronin team ended in Chainlink’s CCIP as the chosen option from the list of other competing products over a rigorous process of selection.
When the market reacted to the announcement, its price surged sharply upward. Their adoption of CCIP is a serious leap in the security and efficiency of their bridge. This is fundamental for seamless asset transfer between different blockchains.
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Fresh market activities have only added fuel to the fire and recently demonstrated that Trump’s World Liberty DeFi project has begun to hoard huge amounts of LINK.
The project, which paid $1 million for LINK (about 41,335 tokens) in an hour, is a strong endorsement of Chainlink’s technology, according to the market analysts.
World Liberty, which announced in November last month that it would utilize LINK Price Feeds in its Aave V3 rollout to help bolster the fintech side of the decentralized finance industry, brought its Chainlink integration full circle with this purchase.
Market Response and Technical Aspects
The market reacted to the announcement by pushing the price of LINK over 30% higher within 24 hours.
As the news of the partnership was revealed, LINK’s trading price spiked greatly as shown in the attached chart.
A surge in trading volumes, which served to support this upward trajectory, showed a robust market interest.
More technical analysis of the chart further shows a massive bullish breaking through a previous resistance zone.
At the top of the chart, we’ve got the resistance zone in red around $30.00. Within a blue-shaded channel, the price was trending downside indicating a bearish trend before the breakout.
The breakout above this channel and the resistance zone is a bullish trend reversal.
The breakout candle lacks volume in the snapshot. However, it being close to the resistance zone and the volume within this breakout candle suggests strong buying in this area.
However, we find that the ADX line was plotted at the bottom of the chart with a reading of 38.49. This is a clear pointer that the prevailing trend was strong despite its being bearish.
But since ADX, a lagging indicator, may indicate that the strength can change from a bearish to a bullish trend it does not mean the recent breakout failed to work.
At the horizontal red zone, right about the $30.00 price level, there’s immediate resistance. If the price survives above this zone, it could actually reinforce another support level.
At around $26.00, we can see previous support levels before the breakout, which represented the lower boundary of the descending channel interacting with the price.
