Chainlink (LINK) is defying the market’s bearish tone today, as the token is rallying by 4% while most other altcoins are retreating.
LINK has emerged as a top winner during this latest recovery, booking a 30-day gain of 30.3%. As a result, its year-to-date performance has swung to positive territory at 21%.
Comparatively, top tokens like Solana (SOL) and Ethereum (ETH) are still sitting on yearly losses of 3.6% and 4%, respectively.
The network’s total value secured (TVS), a key metric that tracks the aggregated value of all assets held across Chainlink’s solutions, has been recovering from of a low $43 billion to in June this year to $57 billion as of last month.
Market Participants Greet the Launch of Chailink’s CCIP 2.0
Today, the project unveiled version 2.0 of its widely used Cross-Chain Interoperability Protocol, also known as CCIP.
This new version aims to be a secure “bridge and messaging highway” for the world’s biggest financial institutions (banks, asset managers, and stock exchanges) to move massive amounts of money and data safely across different blockchains.
CCIP 2.0 incorporate a starters kit for institutions that can be deployed on Google Cloud or Amazon Web Services to launch their own Cross-Chain Verifiers. These are independent co-signers operated by institutional users of the solution that will ensure that each transaction complies with their standards and protocols.
In addition, the new version will incorporate Ethereum’s new Fast Confirmation Rule (FCR) to increase transaction settlement speeds significantly.
This is a key innovation at a point when big players on Wall Street and the U.S. federal government is fostering increased adoption of blockchain-based solutions that make the financial markets cheaper, more efficient, and more accessible.
Chainlink highlighted that over $15 billion in token value has migrated to CCIP recently as top industry players like Coinbase and Kraken aim to strengthen their systems and protocols.
LINK May Have to Pull Back to $12 Before Resuming Its Rally to $20
Today’s price action seems to be a response to this launch. Trading volumes have jumped by 89% shortly after the project published its official press release and X post announcing the launch.
These volumes currently account for 6.4% of the asset’s circulating market cap, indicating that the buying pressure is rising.
Turning to the daily chart, we can see that LINK just hit a key resistance at $15 and the selling pressure quickly ramped up. We expect a pullback if the retreat accelerates during today’s session, considering the overall bearish tone of the crypto market.
If that’s the case, the hottest buy zone for LINK in case of a pullback seems to sit between $12 and $13.
Buying at those levels could result in an upside potential of 67% if the price breaks past that $15 barrier in the next few days and rallies toward what we see as the most likely target for LINK during the next leg up — the $20 area.
A bearish divergence emerged in the Relative Strength Index (RSI), indicating that positive momentum could be weakening. This is normal during the exhaustion phase of rallies. Hence, this healthy pullback seems highly likely as the market needs additional liquidity to keep the uptrend going.
