Chainlink (LINK), the decentralized oracle network, has been making headlines recently as its price surged to a six-week high, nearing the $18 mark. This impressive rally comes amidst speculation about a partnership announcement and demo between Chainlink and SWIFT at the upcoming Consensys 2024 conference in Austin, Texas.
TLDR
- Chainlink (LINK) price has surged to a six-week high, nearing $18.
- Speculation about a potential Chainlink-SWIFT partnership announcement at the Consensys 2024 conference is driving the price rally.
- The majority of LINK holders (62%) are currently “in the money,” indicating profitable investments.
- Strong on-chain data and a high ratio of profitable transactions support the positive sentiment surrounding LINK.
The conference, which takes place from May 29 to May 30, features a session titled “How Swift and Chainlink Are Working Together to Unlock Tokenized Assets At Scale.”
The session will be led by Jonathan Ehrenfeld, Head of Securities and Digital Assets Strategy at SWIFT, and Sergey Nazarov, Co-Founder of Chainlink.
This has fueled expectations that the two entities may reveal further advancements in their collaborative efforts to bridge traditional financial infrastructure with the growing multi-chain economy.
RWAs are meaningless without @chainlink. Next week, $LINK + SWIFT are giving a joint lecture on asset tokenization.
A year ago, they announced a successful testnet: This year…mainnet?
????Maybe a nice RWA announcement to account for someone collecting $200m+ $LINK in q1. ????… pic.twitter.com/M3pAwU0iuF— CryptoCondom (@crypto_condom) May 25, 2024
Chainlink’s role as a leading provider of on-chain data and cross-chain interoperability solutions positions it as a strategic partner for SWIFT, which has long been the backbone of global financial communications across thousands of banks.
The potential announcement could revolve around new protocols or a mainnet launch, which would significantly impact the adoption and growth of tokenized assets.
The positive sentiment surrounding LINK is not just based on speculation, as strong on-chain data and profitable transactions support the price rally.
According to data from Santiment, the ratio of LINK’s daily transaction volume in profit to loss was 11 on May 23, indicating that for every LINK transaction that ended in a loss, 11 transactions resulted in a profit. This high ratio of profitable transactions has contributed to the overall optimism in the LINK community.
???????? #Chainlink has climbed well ahead of the #crypto pack, quickly surpassing $17.50 for the first time in 6 weeks. #Onchain today, there are 11 transactions in profit for every 1 $LINK transaction at a loss. This is the highest ratio since Dec. 8, 2022. https://t.co/nILlWsXWNh pic.twitter.com/joMV55V5x7
— Santiment (@santimentfeed) May 24, 2024
Data from IntoTheBlock reveals that approximately 62% of LINK holders, or 432,000 wallet addresses, are currently “in the money,” meaning they hold LINK at a profit.
This suggests that the majority of LINK investors have benefited from the recent price surge, which could further drive market confidence and attract more buyers.
However, despite the positive sentiment and strong on-chain metrics, some caution is warranted. A key technical indicator, the Chaikin Money Flow (CMF), has shown a downward trend even as LINK’s price has surged.
This bearish divergence indicates that the buying pressure may not be as strong as the price rally suggests. Investors should monitor other technical indicators, such as the Relative Strength Index (RSI) and Moving Average Convergence Divergence (MACD), to assess the momentum and potential reversal points.
The broader implications of LINK’s price movement extend beyond its holders, as the recent surge amidst a generally stable cryptocurrency market highlights the potential for individual altcoins to outperform the broader market.
This could attract more investors to LINK, further driving its price up in the short term.
