Chainlink’s price has been taking a beating in recent months, sliding alongside most other altcoins. Right now, Chainlink (LINK), the largest oracle network in the crypto industry, is trading at around $13.12. That’s a 26% drop from its May highs and down a staggering 57% compared to its November peak.
What’s puzzling is that LINK’s price has tumbled even though the project has announced some impressive developments lately.
For starters, Chainlink recently launched a significant partnership with Mastercard, the world’s second-largest payment processor. This collaboration is aimed at allowing people to buy cryptocurrencies directly with their cards. Chainlink’s role is to provide crucial verification and synchronization solutions for these transactions. The initiative also includes big names like Shift4 Payments and Uniswap.
Chainlink is also carving out a crucial role in the rapidly expanding stablecoin industry. Its Proof of Reserve solution helps companies deliver accurate, transparent data about their token holdings a key requirement for stablecoin issuers.
Meanwhile, Chainlink keeps adding heavyweight partners to its roster. The project now counts major global players like JPMorgan, UBS, the Swift Network, and ANZ Bank among its partners.
In the latest update on July 2, Chainlink announced a partnership with Aktionariat, a Swiss equity tokenization platform boasting over 30,000 registered investors. Aktionariat is leveraging Chainlink’s Cross-Chain Interoperability Protocol to create secure, cross-chain treasury accounts.
Chainlink has also joined the xStocks Alliance as its official oracle provider. Other members of the alliance include Kraken, Solana, Alchemy Pay, Jupiter, and Raydium. Chainlink’s oracle services will help make tokenized stocks accessible to investors worldwide.
Despite the bearish price action, on-chain data offers some reasons for optimism. According to data from Santiment, the amount of LINK tokens sitting on exchanges has dropped to 208 million, down from 212 million last month. That’s significant because it follows a surge in trading volume during June and often signals that investors are pulling tokens off exchanges to hold rather than sell.
Another positive sign is the Mean Dollar Invested Age (MDIA) of LINK, which has continued climbing this year. The MDIA has reached 129.50, up from around 110 in April. A rising MDIA suggests that investors are holding onto their tokens for longer periods a sign of confidence.
Technical Picture Remains Unclear
When it comes to the charts, however, Chainlink’s outlook is still murky.
On the daily chart, LINK has formed a double-bottom pattern around $10.90, with a neckline at $17.90. A double bottom is generally a bullish sign, hinting that the price could bounce higher. If the pattern plays out, the first target to watch is $17.90, and then potentially the psychological level at $20.
However, there are also bearish signals lurking. LINK is still trading below both its 50-day and 100-day Exponential Moving Averages a sign that the broader downtrend remains in place. Additionally, the price pattern has started to resemble an inverse cup-and-handle, with the current price action forming the “handle.”
If the pattern turns out to be an inverse cup-and-handle rather than a double bottom, that would be a bearish signal, suggesting LINK could fall further, potentially testing support around $10.
For now, the key level to watch is $10.91. A drop below that would confirm the bearish pattern and could open the door to even steeper losses.
So, despite exciting partnerships and some positive on-chain signals, Chainlink’s price is still at a crossroads. Investors will be closely watching the charts to see which way things break from here.
