Chainlink [LINK] has experienced two instances where its price reached $12 within the past two months, only to encounter strong resistance each time. The first occurrence resulted in a significant retracement, while the recent surge has been accompanied by a quicker emergence of green candles.
With the current price standing at $11.28, the primary hurdle for bulls remains the breakthrough of the $12 barrier. Analysts anticipate that this breakthrough might happen before the conclusion of the Q4 cycle.
While Bitcoin’s recent retesting of the $62k resistance is contributing to a positive market sentiment, supported by the general excitement surrounding October, there are additional underlying factors encouraging investors to speculate on LINK’s future value.
Strategic Partnerships Driving LINK Forward
In an effort to strengthen its institutional presence, Chainlink Labs has entered into a partnership with Taurus, a leading digital asset infrastructure provider. This strategic alliance aims to bolster LINK’s transaction capacity, a crucial element in ensuring blockchain competitiveness.
If successful, this collaboration has the potential to attract significant institutional interest, thereby enhancing LINK’s visibility and setting the stage for substantial long-term value appreciation.
Nevertheless, despite these strategic moves, some stakeholders have begun to withdraw from the LINK network, as indicated by the chart data below.
The volatility experienced in September resulted in a notable reduction in LINK’s DeFi platform total value locked (TVL), plummeting from a peak of $555 million a week ago to $462 million at present.
Adding to the concerns, the daily transaction volume, which had peaked at one million in mid-July, has now hit a three-month low of 195k.
In essence, these collaborative initiatives are unfolding amidst an internal crisis within the LINK ecosystem. If these efforts unfold as planned, LINK could be set for a potential short-term price adjustment.
Supported by Major Players
Whale wallets, representing 49% of the major holder group, currently hold 489 million LINK coins, with their activities significantly influencing LINK’s valuation throughout September.
Earlier in the month, these large holders were divesting their holdings. However, in recent days, there has been a noticeable shift, as major holders are now beginning to accumulate LINK tokens once again.
The resurgence in whale accumulation has led to LINK successfully flipping the crucial $10 resistance level into support. With this critical milestone achieved, breaking through the $12 barrier appears increasingly plausible.
However, the internal obstacles faced within the LINK network, manifested through declining user engagement, present a stark contrast to the speculations suggesting that LINK could surge to $40 by the end of the next bullish cycle.
Overall, the current outlook leans towards a somewhat optimistic sentiment. If partnerships manage to reinstate confidence among institutional investors, a breakout may be on the horizon – a development the Chainlink network is currently yearning for.