Chainlink Price Forecast: LINK Breakout Targets $18 Rally

Chainlink (LINK) has experienced an impressive 51% rally in the past 7 days, following the release of the U.S. Securities and Exchange Commission (SEC) newly proposed rules for the crypto industry.

The firm’s total value secured (TVS) has been progressively recovering since June this year, jumping from $43 billion to nearly $57 billion by the end of August, resulting in a 53% increase.

A couple of project-specific announcements may have also aided the rally, including the launch of a new partnership with Bottomline, a firm that facilitates SWIFT transfers for over 600 global banks.

The collaboration aims to connect Bottomline’s existing off-chain infrastructure securely with multiple blockchains to enable digital payments.

Increased Adoption of Chainlink’s CCIP Solution Could Drive the Next Rally

Chainlink has also been selected as a key partner of the Wyoming Stable Token Commission to provide transparent proof of reserves for stablecoins registered in the state.

“By adopting Chainlink Proof of Reserve as Wyoming’s exclusive onchain asset verification infrastructure, we’re providing transparent, verifiable confirmation that the Frontier Stable Token is fully backed by high-quality reserve assets,” commented the head of the Committee in a press release published just days ago.

If other jurisdictions within the United States start to embrace Chainlink’s solutions for this and other purposes, the protocol’s usage will increase, resulting in stronger fundamentals and growth prospects for the CCIP solution.

The approval of the Clarity Act in the U.S. could pave the way for this project expand this footprint in this key market. Although the odds that the law will be passed this year currently sit at just 16% on Polymarket, President Donald Trump has vowed to do everything he can to get the bill moving.

Finally, the success of TradFi solutions lately and increased adoption of tokenized assets like stocks and commodities is a top trend favoring Chainlink, which could also explain why its native asset, LINK, has outperformed most other cryptocurrencies in the past 30 days.

LINK Eyes Rally to $18 After Bull Flag Pattern Breakout

Looking at the daily chart, we can see that the token broke past the 200-day exponential moving average (EMA) in late August, along with multiple other altcoins.

This put LINK on a clear uptrend and should confirm the end of the asset’s latest bearish cycle. Positive momentum remains strong, as the Relative Strength Index (RSI) stands at 64.

However, the most relevant price action signal has been a move above the $12 resistance two days ago, as this confirmed the bullish bias of a bear flag pattern that had been forming since the August 21 rally.

Flat patterns are continuation setups that emerge following a strong price move. They indicate that the market has entered a temporary phase of consolidation where assets are transferred from early buyers taking up profits to late buyers that are now positioning for the rally’s continuation.

This seems to be what’s happening with LINK. If that’s the case, this breakout could result in a massive push to the $18 level based on the magnitude of the previous uptrend, which translates into a 44% upside potential for the token in the near term.