Convergence of Traditional and Decentralized Finance May Boost Chainlink

According to Cointelegraph, the convergence of traditional finance (TradFi) and decentralized finance (DeFi) is gaining momentum, potentially impacting the value of Chainlink (LINK). At the recent RWA Summit in Cannes, Nelli Zaltsman, head of blockchain payments innovation at JPMorgan Kinexys, highlighted this trend. A significant development in this area was a crosschain Delivery versus Payment (DvP) test transaction conducted by JPMorgan, Chainlink, and Ondo Finance. This transaction involved a permissioned payment network and a public testnet, showcasing the potential for traditional institutions to move onchain. The price of LINK has been consolidating within a range of $10.94 to $18 over the past few months. Currently, the LINK/USDT pair is approaching the $18 resistance level, which could attract selling pressure from bearish investors. However, if the price retraces from $18 but finds support at the 20-day exponential moving average (EMA) of $14.85, it would indicate positive market sentiment. This scenario increases the likelihood of a breakout above the $18 mark, potentially completing a double-bottom pattern with a target of $25.06. Conversely, a sharp decline from $18 that breaks below the 20-day EMA would suggest that the range-bound movement might persist for a while longer. On the 4-hour chart, the bulls have been buying minor dips at the 20-EMA, indicating strong buying interest. While the pair might face resistance at $18, a rebound from the 20-EMA would suggest that buyers are maintaining control, enhancing the chances of surpassing the overhead resistance. However, this optimistic outlook would be negated if the price sharply declines and falls below the 50-simple moving average, potentially leading to a drop to $14.70 and subsequently to $14. It is important to note that this article does not provide investment advice or recommendations. All investment and trading decisions involve risk, and readers are encouraged to conduct their own research before making any financial decisions.