Bitget Token (bgb) 
Chainlink Price Correction: A Potential Bullish Breakout
Chainlink’s price has experienced a technical correction, plummeting nearly 40% from its highest level this year. As of Wednesday, Chainlink was trading at $19.50 amidst the ongoing pressure in the cryptocurrency market.
Despite the current downturn, both fundamental and technical indicators suggest that Chainlink is poised for a bullish breakout, potentially reaching an all-time high.
Key Fundamental Indicators
Several factors contribute to Chainlink’s positive outlook. Firstly, Chainlink is part of Donald Trump’s World Liberty Financial portfolio, with accumulated LINK tokens worth over $730,000.
Secondly, the Securities and Exchange Commission is expected to approve a spot LINK exchange-traded fund. This approval could drive significant hype and inflows, particularly as exchange balances for LINK continue to decline.
Thirdly, Chainlink plays a crucial role in the Real-World Asset tokenization sector, which analysts expect to be worth trillions of dollars in the coming years. The project’s Cross-Chain Interoperability Protocol is a key component of this sector.
Institutional Interest and Partnerships
Chainlink has secured partnerships with leading global companies, including UBS, Coinbase, Swift, Fidelity, and Lemonade. These partnerships position Chainlink for significant scalability as the industry matures.
Furthermore, Chainlink remains the largest oracle network in crypto, securing $33 billion in value and maintaining a 55% market dominance. Its proof-of-reserve solutions provide transparency for issuers in the stablecoin industry.
Technical Analysis
The weekly chart shows that Chainlink formed a cup-and-handle pattern between 2022 and late 2024, a bullish technical setup that often precedes strong price rebounds.
Additionally, LINK has developed a falling wedge pattern, characterized by two descending and converging trendlines. A breakout typically occurs when the price nears the confluence of these lines.
Chainlink has also entered the fourth corrective wave of the Elliott Wave pattern. This stage is usually followed by a fifth bullish wave, suggesting potential upside momentum.
Price Outlook
Based on the analysis, the LINK price is likely to lead to a strong bullish breakout, potentially reaching the all-time high of $54.30, up by 180% from the current level. A drop below the lower side of the wedge at $15.6 will invalidate the bullish view.
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