Chainlink has successfully completed a pilot project with JPMorgan, Templeton, BNY Mellon, and other major US banks to accelerate the tokenization of funds.
The pilot project, named Smart NAV pilot, tested a process to bring and disseminate fund data on multiple blockchains, which is a crucial step for the future of tokenization.
The Chainlink trial revealed capabilities that support future industry exploration of tokenization, including cases such as brokerage portfolio applications. This development represents a significant milestone in the adoption of blockchain technology within the financial sector.
JUST IN: Chainlink $LINK completes test with JPMorgan, Templeton, BNY Mellon and other major US banks to accelerate the tokenization of funds.
— Watcher.Guru (@WatcherGuru) May 16, 2024
Chainlink (LINK) Price Prediction
The positive news surrounding Chainlink’s successful pilot project has contributed to a substantial price surge for the LINK token. At the time of writing, LINK has pumped by 8%, making it the best-performing cryptocurrency among the top 20 coins globally. LINK is currently trading around $15, and this price rally can be directly attributed to the recent developments.
It’s worth noting that while the broader cryptocurrency market is experiencing a correction today, with most altcoins trading in the red, LINK’s price increase stands out as a direct response to the tokenization pilot news.
Based on the analysis from altFINS, a prominent crypto research firm, the recent price action in Chainlink (LINK) suggests a potential bullish breakout from a descending channel pattern. This breakout could signal a trend reversal, with the possibility of a 20% upside move toward the 200-day moving average, which currently resides around the $16 level.
According to altFINS, the $13 support level has proven to be a significant area of interest, having held up multiple times in late 2023 and early 2024. This level could present attractive swing trade entry opportunities for traders looking to capitalize on the potential trend reversal.
Source: altFINS – Start using it today
However, it’s important to note that altFINS considers this a riskier trade setup, as it goes against the overall downtrend seen across various time frames. They recommend setting a stop-loss order below the prior swing low at $12.30 to manage risk effectively.
Interestingly, altFINS highlighted that Chainlink (LINK) was one of their research coin picks, and since their initiation report in August 2023, the token has rallied by an impressive 100%. As a leading oracle data provider, altFINS believes that Chainlink could benefit from the long-term trend toward tokenization of real-world assets (RWA), such as US Treasury bills.
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Show more +According to the analysis, the immediate support level for Chainlink (LINK) lies at $13.00, followed by a stronger support zone around $10.50. On the upside, the token faces resistance at $17.00, with additional hurdles at $20.00 and $22.00 if the bullish momentum persists.
While it’s difficult to provide an accurate price prediction, the positive news surrounding Chainlink’s successful pilot project and the bullish breakout from the Channel Down pattern suggest that LINK could potentially target the $16 level, aligning with the 200-day moving average. If that level is breached, then $20 would be the next price target for LINK.
However, traders should be careful as the overall trend remains “nor here nor there” in the post-halving period.
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