Chainlink (LINK) has surged by 7.13% today, reaching a trading price of $11.82 after a series of significant developments.
One of the key developments is the collaboration with SWIFT services provider Bottomline, which allows over 600 banks to utilize Blockchain settlement through Chainlink. Another major update is Wyoming state integrating Chainlink’s Proof of Reserve into its native state-issued FRNT stablecoin for real-time reserve and supply monitoring. Additionally, LINK is benefitting from the overall market risk-on rally as Fed Governor Christopher Waller reassured investors about the possibility of aggressive rate hikes later this month.
The overhead resistance Chainlink needs to surpass
These developments, combined with the positive momentum in August, have contributed to LINK’s impressive 45.78% gain over the past month. However, for a true rally to be confirmed, the token must overcome several obstacles.
Earlier this year, LINK experienced a significant breakdown below the symmetrical triangle it was trading in, leading to a more than 40% drop to $7.2. The token then established a local bottom between this price point and the $8.6 ceiling.
After consolidating for several months in this range, LINK recently broke above the $8.6 and $10.9 resistance levels.
To confirm a bullish reversal, LINK must clear the horizontal supply cluster at $12.7. A successful breach here could lead to a retest of the $14.6 psychological pivot.
Source: TechCharts
However, if the $7.2 support level fails to hold, a retest of the historical $5.4 floor could become likely.
Additional influencers
Other factors influencing the markets include the conflict in the Middle East and a potential delay in the Senate’s vote on the CLARITY Act.
While the Fed Governor has alleviated concerns about an imminent rate hike, the agency’s future actions remain uncertain, especially with inflation persisting at a multi-month high above 2%.
