Could LINK price increase by 57%? Everything you need to know about Chainlink's prospects.

Chainlink is showing remarkable prominence in the field of cryptocurrency development, especially after recently surpassing Ethereum in terms of activity on GitHub.

This can be explained by the impressive success of Chainlink in the e-HKD+ pilot program in Hong Kong, where the program's interactive protocol created opportunities for cross-border exchanges between CBDC and stablecoins.

Chainlink surpasses Ethereum in the development race

According to a report from the blockchain analysis company Santiment, Chainlink has surpassed Ethereum in development activity over the past 30 days. This achievement reinforces Chainlink's position as a leading infrastructure provider for the tokenization of real-world assets (RWA).

Santiment also revealed that although Chainlink ranks second in activity on GitHub, it still surpasses Ethereum ( which stands eighth in terms of contributions and development on this platform. This reflects the strong resilience of Chainlink, especially in deploying use cases for organizations.

"While most cryptocurrencies remain stable, Chainlink )+7.7%( and Ethereum )+6.3%( continue strong growth. Both of these projects have strong development teams, and in the last 30 days, Chainlink has had its second most prominent GitHub event, while Ethereum ranks eighth," Santiment analysts said.

Strong relationship with financial institutions

The technical progress of Chainlink is taking place against the backdrop of this network increasingly building strong relationships with major financial institutions. Sergey Nazarov, the co-founder of Chainlink, recently responded to a report from Visa, affirming that Chainlink has the capability to address three major challenges facing smart contracts in institutional transactions: secure data feeds, cross-chain connectivity, and compliance standards.

Nazarov shared on X:

"I am very excited about the report from Visa, which shows that Chainlink can solve the three biggest problems of the next generation smart contracts for institutional transactions, all on one platform."

The company also provided an example of a complex transaction between ANZ and Fidelity International, conducted under the management of HKMA, which further reinforces the unique value that Chainlink brings to the market.

On June 9, Chainlink's cross-chain interaction protocol )CCIP( supported secure transactions between Hong Kong's CBDC and Australian dollar stablecoin. This experiment brought together major financial companies such as Visa, ANZ, China AMC, and Fidelity International, and it generated a positive response from the market, pushing the price of LINK from 13.9 USD to 14.6 USD, an increase of 8% right after the announcement.

This growth reflects the increasing confidence of investors in Chainlink's infrastructure as a blockchain platform for organizations. As of now, the price of LINK has increased by more than 5% in the past 24 hours, trading at 15.16 USD.

LINK Price Outlook

Although the fundamental factors are supporting the growth trend of Chainlink, the price of LINK is currently facing strong resistance in the range of 16.04 USD to 17.43 USD, along with the upper trend line of the descending wedge pattern. These are significant obstacles that this cryptocurrency needs to overcome to maintain its growth momentum.

If LINK can break through these resistance levels and hold above the trend line, the price could continue to rise significantly in the long term, with the potential to increase by up to 57%. This target is determined by measuring the height of the wedge pattern and applying it to the potential breakout point, creating strong momentum for LINK.

Current technical indicators are showing positive signals. Specifically, the price of Chainlink has successfully reversed and found support at the 50-day SMA, currently at 15.07 USD. Additionally, the 100-day SMA at 14.35 USD is also playing an important support role.

However, for investors looking to maintain a Long position on LINK, a clear signal will be when the closing price is above 16.7 USD, as this is an important threshold in the supply zone. The RSI indicator is currently also supporting a bullish outlook as it stays above 50, indicating that buyers are in control and the market is likely to continue its positive trend.

RSI above 50 emphasizes the strength of the uptrend, while also indicating the confidence of investors as the price of LINK continues to make higher highs in recent trading sessions.

! [])https://img.gateio.im/social/moments-783574d65a256e94f210d0081a4c6b9e( LINK Price Chart 1 Day | Source: TradingViewHowever, if the upper trend line of the wedge pattern continues to act as resistance, the Chainlink price is likely to fall, and the 50-day SMA will return as a resistance level. If selling pressure increases, the LINK price could break the support levels, making the 100-day SMA a new resistance level at $14.35. In this case, the demand zone between $10.78 and $11.46 could become an opportunity for the bulls to enter, but if this zone is broken, the failure of these support levels could prolong losses for LINK holders.

With positive fundamental factors and stable technicals, Chainlink still has strong growth prospects if it can break through important resistance levels in the short term.

Emma