On December 12th, Chainlink [LINK] experienced a notable surge of more than 23% as a result of World Liberty Financial (WLF) purchasing over $1 million worth of LINK.
The alternative cryptocurrency saw a rapid increase from $23 to $29 before slightly retracing to $27 at the current moment.
SpotOnChain, a blockchain analytics company, reported that the DeFi protocol with ties to Donald Trump also invested in Aave [AAVE] and Ethereum [ETH].
WLF’s wallets now contain more than $64 million, primarily comprising DeFi tokens.
Reactions from the Community
In response to this development, Zach Rynes, a liaison for the Chainlink community, emphasized WLF’s display of confidence in LINK. He commented,
“The DeFi initiative associated with Trump is acquiring $LINK, amassing $1 million (41,335 LINK)… This move comes after the recent announcement that World Liberty will be utilizing Chainlink, beginning with the incorporation of Price Feeds.”
Another analyst in the market, Horse, suggested that WLF’s actions might shed light on projects that could benefit from the policies of Trump. Horse remarked,
“Trump’s entity is acquiring cryptocurrencies that are expected to significantly profit from his strategies.”
Simultaneously, WLF also made notable investments of $10 million in ETH and $1 million in AAVE. For the uninitiated, WLF has partnered with Aave v2, a DeFi protocol for lending and borrowing.
The market has shown optimism towards Trump’s crypto-related strategies, particularly with recent pro-crypto selections. The extent to which the DeFi sector will capitalize on this remains uncertain.
Given the circumstances, what can be predicted about the short-term price movement of LINK?
LINK Stabilizes
LINK has been consolidating beneath its previous annual peak of $26. The involvement of WLF elevated it to a fresh yearly peak of $29.
Subsequently, profit-taking ensued as the altcoin retreated towards $26. A successful test of $26 as a support level could confirm LINK’s upward trend. In such a scenario, potential targets on the upside could be $30 and $35.
However, a breach below $26 might lead LINK towards $23 or the support offered by the trendline.