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Chainlink price resumed its strong rally today, August 12, as the crypto market bull resumed and its ecosystem growth accelerated. LINK token surged to $24.20, its highest point since February, and 138% above the lowest level this year. Elliot Wave analysis points to more gains as the total value secured (TVS) hits $60 billion.
Chainlink Price Elliot Wave Analysis
Elliot Wave analysis is a common approach in technical analysis that identifies the five wave that assets go through during a bull run. The first wave is usually bullish, followed by a retracement. In the Chainlink price case, the first phase started forming on June 22nd when it bottomed at $11 and ended on June 30th when it peaked at $20.
The first stage of this pattern was notable because it coincided with the lowest level in April, meaning it was a double-bottom pattern. A double-bottom is a common bullish reversal sign characterized by two swings and a neckline, which, in this case, is $17.91.
Chainlink’s second phase of the Elliot Wave started on June 30 and ended on August 3 when it bottomed at $15. This phase was confirmed as the token did not fully retrace its initial phase.
The token has now moved to the third phase, which is usually the most bullish and the longest. Its target is likely the last year high of $30, which is 32% above the current level. This view will be confirmed if the price moves above the 23.6% Fibonacci Retracement level.
The bullish Chainlink price will become invalid if it drops below the key support level at $17.9, its highest level in May, and the double-bottom pattern’s neckline. A drop below that level will point to more downside.
Chainlink Total Value Secured Hits $60 Billion
LINK token has some of the best fundamentals in the crypto industry. One reason for this is that it is the biggest oracle, which is a network that connects off-chain data to the on-chain in a secure and accurate manner. One example is price feeds, which it collects from platforms like CoinGecko and moves them on-chain, using decentralized exchanges (DEX).
Data shows that the total value secured (TVS) by Chainlink has jumped to $60 billion, giving it a market dominance of 62%. It is much bigger than other Oracle networks like Chronicle, Internal, RedStone, Pyth, and Edge.
The top dApps in Chainlink network are AAVE, Compound, Maple, Finance, SparkLend, and Renzo. This growth will continue as the crypto bull run gains steam.
Additionally, Chainlink recently announced that it would incorporate stock and ETF feeds into its platform. This is notable since more companies like Robinhood and Kraken have announced entry into the tokenized stocks industry.
Chainlink is also continuing its partnerships with other companies. On Monday, it announced a major partnership with ICE, the parent company of ICE Mortgage and ICE Data Services. The partnership will help it stream forex data.
This is in addition to other companies that have joined its ecosystem, including popular names like Swift, Coinbase, ANZ Bank, and JPMorgan.
The other bullish catalyst for the LINK price is that the futures open interest has jumped to over $1.4 billion, the highest level in years. A soaring interest is a positive thing because it shows high demand.
Chainlink price has staged a strong comeback in the past few weeks, mirroring the performance of most cryptocurrencies. The Elliot Wave pattern, a double-bottom, and a golden cross pattern point to more gains in the coming weeks. It also has strong fundamentals as the decentralized finance (DeFi) and the real-world asset (RWA) industry gains steam. Also, the coin will benefit from the crypto market bull run.
