Chainlink’s price has been on a remarkable upswing, hitting $26.87—its highest level since December 18. This surge represents a 46% rise from its lowest point this year, pushing its market valuation to $16.7 billion. Behind this rally lies a combination of strategic acquisitions and promising partnership prospects.
Trump’s WLFI Boosts Chainlink Holdings
World Liberty Financial Inc. (WLFI), a financial entity linked to Donald Trump, has emerged as a significant driver of Chainlink’s recent performance. WLFI purchased an additional $4.6 million worth of LINK tokens, increasing its total Chainlink holdings to $6.6 million. Beyond Chainlink, WLFI’s diverse portfolio boasts $179 million in Ethereum, as well as assets like USD Coin, Tether, Wrapped Bitcoin, AAVE, Ethena, and Tron. Altogether, the portfolio’s value exceeds $322 million.
This strategic investment is poised to benefit from Trump’s presidency, which could influence regulatory developments in the cryptocurrency sector. For instance, his administration has created a crypto advisory council and nominated Paul Atkins to head the Securities and Exchange Commission (SEC). These actions have sparked optimism about potential regulatory clarity, including the possibility of a spot Chainlink ETF.
Hints of a Cardano Partnership
Adding fuel to the bullish sentiment, Cardano founder Charles Hoskinson recently hinted at a potential collaboration with Chainlink. Hoskinson’s plans for 2025 include forging more partnerships, and he has already secured a meeting with Chainlink’s team. This potential partnership could unlock new opportunities in decentralized finance (DeFi) and Real World Asset (RWA) tokenization, combining the strengths of both blockchain platforms.
Declining Exchange Balances Signal Growing Confidence
Another bullish factor is the continued decline in LINK tokens held on exchanges. Data from Coinglass indicates that Chainlink’s exchange balances have dropped to their lowest levels since December 20. This trend suggests growing confidence among investors, who are increasingly moving their LINK holdings to private wallets, likely in anticipation of further price gains.
Technical Analysis: The Path to $37
From a technical perspective, Chainlink’s price chart reveals multiple bullish patterns. The coin has broken above a crucial resistance level at $22.87, which was its March 2024 high. Furthermore, it has surpassed the upper boundaries of both a falling wedge and a bullish flag pattern—signals that often precede significant upward movements.
A cup-and-handle pattern further supports the bullish outlook, with a profit target of $37. This target is derived by measuring the depth of the cup and projecting the same distance upward from the breakout point.
The Road Ahead
As Chainlink continues its upward trajectory, its prospects appear brighter than ever. Strategic investments by influential players like WLFI, coupled with the potential for groundbreaking partnerships, are positioning Chainlink as a standout performer in the cryptocurrency market. With technical indicators pointing to further gains, LINK may very well achieve its ambitious $37 target in the weeks ahead.
