LINK just formed a double top pattern
Chainlink announced a new plan to expand in the traditional finance industry.
It unveiled the Cross-Chain Interoperability Protocol (CCIP).
The coin has formed a double-top pattern on the 4H chart.
Chainlink price rose to a high of $7.32, the highest level since April 26th. At its peak on Tuesday, the LINK token was up by more than 53% from the lowest level in June. It has outperformed other coins like Bitcoin and Ethereum.
Chainlink expands its offerings
Chainlink is the biggest oracle network in the blockchain industry. An oracle is a network that links off-chain data to the on-chain. It is widely used to provide price feeds in decentralized and centralized exchanges.
Chainlink has been growing its ecosystem in the past few years. In June, the developers announced that they had begun testing connecting banks to the blockchain by partnering with Swift.
In a statement on Tuesday, the company unveiled Chainlink’s Cross-chain Interoperability Protocol (CCIP). CCIP is designed to connect traditional financial institutions to the blockchain. The initial blockchains will be Avalanche, Ethereum, Optimism, and Polygon. Early adopters in this testing were Synthetix and Aave.
Therefore, LINK price jumped as investors hope that the network will see more action in the coming months.
Data compiled by DeFi Llama shows that the network has a total value secured (TVS) of over $21.85 billion. This makes it the biggest oracle provider in the world. The other big oracles are Chronicle, WINKLink, Pyth, TWAP, and RedStone.
Chainlink price prediction
LINK price has been in a strong bullish trend in the past few days. On the 4H chart, the coin has moved above the 25-period and 50-period moving averages. It has also formed an ascending channel shown in black. The price is a few points below the upper side of the channel.
Most importantly, Chainlink has formed a double-top pattern at $7.30. In price action analysis, this pattern is usually a bearish sign. The neckline of this pattern is at $6.50. Therefore, despite the new product launch, there is a likelihood that LINK price will have a bearish breakout.
If this happens, the next level to watch will be at $6.50, which is ~6.50% below the current level. On the flip side, a move above the double-top level of $7.30 will invalidate the bearish view.
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