Why is Chainlink (LINK) price up today?

NOIDA (CoinChapter.com)— Chainlink’s native token, LINK, rose by more than 7% since June 19 to reach a daily high near $15 on June 20 before correcting due to profit booking.

Chainlink’s integration with Mode, along with bullish technicals and traders, could be the likely cues driving the bullish momentum for LINK.

However, LINK prices have remained in the red over the past seven days, albeit not by much. Despite the token’s modest price action, LINK traders remained bullish on its prospects.

Bullish Market Sentiment

A crypto trader, going by the name ‘BubbaFox‘ on X, prophesized that LINK would be one of the top three cryptocurrencies in the future. The trader noted that collaborating with major entities like DTCC, which clears nearly all US equity trades, Chainlink (LINK) is working on bringing mutual funds on-chain.

Bubbafox claimed that the partnership underscored LINK’s potential to significantly impact the financial industry, differentiating the Chainlink token from meme coins like WIF and PEPE, which contribute little to nothing to the financial landscape.

Integrating Distributed Ledger Technology (DLT) into mainstream finance could help Chainlink attract more partnerships in the future.

Another LINK trader highlighted similarities between the price action of Ethereum (ETH) in 2021 with Chainlink (LINK) in 2024. The independent analyst highlighted similar accumulation phases for both assets, suggesting that LINK might follow a similar trajectory as ETH did in 2021.

Moreover, the post speculated that LINK, currently in its accumulation phase, could potentially experience a breakout similar to ETH in 2021

Furthermore, LINK’s exchange netflow has been negative recently, signifying LINK withdrawals from exchanges and indicating bullish sentiment. Reduced net inflows suggest holders intend to keep their tokens, decreasing selling pressure and potentially driving price increases.

Moreover, LINK’s price remains stable around $14-$16, reflecting strong support levels. The accumulation phase, coupled with recent integrations like Mode, highlights positive market sentiment and confidence in Chainlink’s future, suggesting a favorable outlook for LINK’s value.

Mode Integration Is Also Why Chainlink Price Is Up Today

Chainlink announced that Ethereum L2 chain Mode has integrated Chainlink’s CCIP to enhance its cross-chain interoperability. CCIP, Chainlink’s cross-chain messaging protocol, facilitates the transfer of tokens and data across blockchain networks.

By integrating this technology, Mode gains cross-chain security and access to Programmable Token Transfers and Arbitrary Messaging. The features would enable Mode to support DeFi and real-world asset (RWA) applications, fostering seamless cross-chain transactions.

With CCIP’s ability to handle complex cross-chain operations, Mode could likely attract more developers, positioning Mode to capitalize on the demand for secure cross-chain solutions.

By adopting CCIP, Mode enhances its cross-chain capabilities and ensures high security, addressing a critical need in the blockchain landscape. Additionally, the integration exposes CCIP to more use cases and helps expand Chainlink’s ecosystem.

Bullish Setup Could Be Why Chainlink Price Is Up

Meanwhile, LINK prices recently tested the support trendline of the bullish technical setup called the ‘ascending triangle.’

A rebound from here could infuse confidence in the token’s rally, attracting more buyers expecting a bullish breakout.

Historically, a horizontal trendline connecting swing highs and an ascending trendline connecting swing lows form an ascending triangle pattern. Moreover, the volume helps determine whether a breakout is strong. Under ideal conditions, buyers would enter the market as the trendlines close the gap.

As a result, the token’s price would push above the horizontal resistance with heavy volumes.

Per the rules of technical analysis, the price target for a breakout is equal to the triangle’s height at its thickest point. If the bullish pattern pans out, the theoretical price target for LINK is near $29.5, a spike of 104% from current levels.