Key Insights

• Chainlink's price has formed a golden cross pattern on the daily chart.
• Trading volume and futures open interest have jumped this week.
• The total value secured (TVS) on the network has continued rising.

Chainlink (LINK) has staged a strong recovery over the past few months and now trades at its highest level since January. The token peaked at $13.68, up 96% from its lowest point this year, lifting its market capitalization to $9.9 billion. The rally has been accompanied by a golden cross pattern on the daily chart, a formation that often precedes continued upward moves.

Chainlink is the largest oracle network in crypto — infrastructure that feeds off-chain data such as asset prices onto blockchains so that smart contracts can execute reliably. Because DeFi lending and derivatives platforms depend on accurate price feeds, growth in on-chain financial activity tends to flow through to Chainlink usage and fee generation.

Technical Analysis Points to Further Gains

The daily chart shows LINK rebounding after completing a double-bottom pattern at $7.15, the low reached in both February and June. The double bottom is one of the most widely recognized bullish reversal patterns in technical analysis.

The token has since broken above the key resistance at $10.87 — the double-bottom's neckline and its high from May 10 — and has already retested that level as support. This break-and-retest sequence is commonly viewed as a continuation signal.

Most notably, the 50-day and 200-day Exponential Moving Averages (EMAs) have crossed, forming a golden cross, a pattern that typically signals strong market continuation. The Relative Strength Index (RSI) and the MACD indicator have both continued rising.

Based on these setups, the most likely scenario identified by analysts is a continued move higher, with bulls targeting the key resistance at $15 — the token's high from December of last year. A breakout above that level could open the door to further gains toward $20. Conversely, a drop below the key support at $12 would invalidate the bullish outlook and point to additional downside.

Robust Trading Demand for LINK

Third-party data indicates that demand for Chainlink, the largest oracle network, is growing substantially. According to CoinMarketCap, LINK trading volume jumped 110% in the last 24 hours to over $763 million, making it one of the most actively traded cryptocurrencies today.

A similar trend is visible in the futures market, where open interest has climbed to $764 million — the highest level since October of last year. This increase has come as the weighted funding rate has remained positive over the past few weeks, a reading generally interpreted as investors positioning for a continued bull run.

Growing demand has also reduced the amount of LINK held on exchanges, which has fallen to 115 million coins — the lowest level in months and well below last year's high of 138 million. Falling exchange balances are often read as a shift of coins toward self-custody or long-term holding rather than near-term selling.

Chainlink Benefits From RWA Growth

LINK's price gains have been supported by improving fundamentals. DeFi Llama data shows that the total value secured (TVS) on the Chainlink platform has risen to over $40 billion, up from a year-to-date low of $27 billion and the highest level since April.

Chainlink's network fees have continued to rise in recent weeks, surpassing $1.2 million last week. The network has generated over $11.9 million in fees this quarter, compared with $15 million in the previous quarter, suggesting current-quarter fees may exceed the prior quarter's total.

Chainlink is also benefiting from the growth of real-world asset (RWA) tokenization — the issuance of traditional assets such as funds and bonds on blockchains — with the value of assets in the industry rising to over $43 billion. The network is used by some of the largest players in the RWA sector and is also being used to relay US government data. As major financial institutions increasingly experiment with tokenized products, demand for reliable data infrastructure of this kind has grown alongside the sector.

Source: The Market Periodical