Chainlink (LINK), the cryptocurrency that powers Chainlink’s blockchain interoperability network, surged 8% on Monday, outperforming the vast majority of the broader crypto market.
LINK was last trading in the $6.60s per token, having failed to muster a lasting break above its 200DMA at $6.70, though having managed to break cleanly to the north of its recent multi-week $5.80-$6.40 range.
While much of the broader market remains in malaise, industry observers cited Chainlink’s recent partnerships with major global financial institutions and infrastructure providers as behind the cryptocurrency’s heightened buying pressure.
Back in June, Chainlink and the US Depository Trust and Clearing Corporation (DTCC) announced that they are collaborating on a SWIFT blockchain interoperability project.
SWIFT is the dominant global interbank messaging system, and the collaboration with Chainlink aims to accelerate the adoption of asset tokenization.
Optimism about Chainlink’s SWIFT collaboration was likely in focus on Monday given that the blockchain protocol’s founder was speaking at SWIFT’s global networking event Sibos and touting the benefits and use case of the protocol.
Last week, Chainlink’s Cross-Chain Interoperability Protocol reached an important milestone with regards to its institutional adoption – Australasian bank ANZ used the protocol to complete a cross-chain purchase of an ANZ issued Australian dollar pegged stablecoin.
According to a tweet by Chainlink, this “further showcases how financial institutions can utilize CCIP to facilitate cross-chain transactions across public and private blockchains”.
Price Prediction – Where Next for Chainlink (LINK)?
Chainlink is positioning itself well to become a major winner in the crypto space in the coming years, given the strong interest from major institutions to leverage the network’s technology.
That suggests the long-term outlook for LINK is very strong.
But for the speculators, it remains far to early to bet on a major improvement for LINK’s short-medium term price prospects.
Indeed, LINK remains locked well within its more than 16-month price range of around $5 to around $9.
That being said, a clean break to the north of the 200DMA at $6.70 could open the door to a run higher back towards the summer highs around $8.40 and then at the yearly highs around $8.80.
Disclaimer: Crypto is a high-risk asset class. This article is provided for informational purposes and does not constitute investment advice. You could lose all of your capital.