Chainlink price has pulled back and moved into a bear market after falling by 20% from the year-to-date high. Still, its strong technicals and growing network points to a strong rebound this year.
Summary
- Chainlink price is moving to the fifth phase of Elliot Wave pattern.
- The total value secured in the network has jumped to a record high.
- Chainlink will likely continue soaring as bulls target the resistance at $30.
Chainlink price to benefit as TVS jumps
One potential catalyst for the Chainlink (LINK) price is that the total value secured has continued with its strong rally this year.
Data compiled by DeFi Llama shows that the TVS in its decentralized finance has jumped to a record high of $66 billion. It has jumped from a low of $25 billion in April this year.
The biggest players in its ecosystem are blockchain networks like Maple Finance, Compound, Spark, Renzo, and Fluid Lending. This growth has helped it grow its network fees.
DeFi Llama data shows that the network made over $431,000 in fees in September, a slight increase from $411,000 in the previous month. This growth has brought its annualized fees to over $5.3 million.
Chainlink price benefits from this growth because of its recently launched LINK Reserves. According to its website, the total LINK Reserves jumped to over $8.3 million.
LINK price will also benefit from the potential approval of the recently filed exchange-traded funds. While the SEC is yet to acknowledge the funds, there are high chances that it will approve them soon based on the recently launched listing standards.
Chainlink price is also set to benefit from its partnerships with some of the biggest companies globally. Some of those using or exploring its solutions in the RWA industry are Swift, DTCC, Euroclear, UBS, and BNB Paribas.
LINK price Elliot Wave analysis
The daily timeframe chart shows that the Chainlink price has pulled back in the past few weeks, moving from a high of $27 in August to a low of $20 in September. This crash happened as the coin moved to the fourth phase of the Elliot Wave pattern that started in April when it bottomed at $10.
The fourth phase is usually bearish and is normally followed by the bullish fifth wave. It has also been supported by the 100-day Exponential Moving Average.
Therefore, the most likely LINK price forecast is bullish, with the initial target being the year-to-date high of $27.85. A move above that level will point to more gains, potentially to the psychological point at $30.
