Chainlink Rallies to Seven-Month High Amid Broader Crypto Recovery
Chainlink (LINK) has reached a seven-month high after rallying by over 20% this week. The surge in price comes as the broader cryptocurrency market shows signs of recovery, with Bitcoin (BTC) climbing above $77,000 and Decentralized Finance (DeFi) ecosystem's Total Value Locked (TVL) rising to $84.76 billion.
The DeFi ecosystem recorded over $9 billion in volume for three straight days, indicating increased user activity on DeFi protocols that integrate Chainlink's Cross-Chain Interoperability Protocol (CCIP). The LINK-focused Exchange Traded Funds (ETFs) also saw their four-month highest daily inflow of $3.63 million on Thursday.
Technical analysis shows a bullish outlook for Chainlink, with 10% upside potential amid firm buying pressure. However, the Relative Strength Index (RSI) at 85 is in overbought territory, indicating that the rally may face headwinds near the 78.6% Fibonacci retracement at $12.74.
The steady recovery in Chainlink could also be influenced by institutional investors increasing their exposure to crypto assets following the US Treasury liquidity boost.