Chainlink is currently experiencing a notable price correction phase, as highlighted by Michaël van de Poppe, CEO and founder of MN Trading. Poppe’s insights suggest that Chainlink’s correction is well within the norms for starting a new uptrend.
Poppe suggests that, despite the correction, Chainlink could be poised for an upward breakout if it maintains a price level above $6.70-7.00. In a recent tweet, Poppe anticipated the formation of a higher low, which could serve as a catalyst for a breakout beyond the existing range.
Adding to the intrigue, analyst Ali revealed a surge in the total transaction volume of Chainlink’s native token ($LINK) by whales and institutional players. Notably, these significant players transacted over 20 million LINK in a single day, amounting to nearly $150 million.
#Chainlink | The total volume of transactions by $LINK whales and institutional players is increasing significantly. These large players transacted over 20 million #LINK yesterday, valued at nearly $150 million. pic.twitter.com/3Ky0dhXkCf
— Ali (@ali_charts) October 14, 2023
September was a robust month for Chainlink, witnessing a 25% price gain, outpacing major cryptocurrencies like Bitcoin and Ethereum. However, October has ushered in a 10% correction, causing concern among investors. Breaking the critical support level of $7.20 could trigger further downward pressure, jeopardizing the gains achieved in the preceding month.
Chainlink’s Strategic Position in RWA Trend
Meanwhile, Chainlink’s LINK token has emerged as a focal point in the context of the growing narrative around the tokenization of real-world assets (RWA). K33 Research, in a report, identified LINK as the “safest bet” for investors seeking exposure to the burgeoning RWA trend.
Tokenization involves placing traditional financial assets on blockchains, with promises of reduced costs, operational friction, and improved accessibility and transparency.
David Zimmerman, an analyst at K33, urged investors to consider LINK. He emphasized LINK’s strategic role in connecting blockchains to the external world through its oracle system and extensive partnerships.
Zimmerman anticipates a compelling narrative that could ignite an isolated RWA crypto bubble. However, potential hurdles need to be acknowledged before broader real-world impacts materialize.
However, investors were advised to exercise patience by waiting for lower prices. Zimmerman highlighted a long-term support level of around $5.70. Moreover, it is a reasonable entry point for long positions in the ever-dynamic world of cryptocurrencies.