Will Buying Chainlink During The Dip Fuel A Move Past $20?

Key Insights:

• Chainlink price broke above a long-standing trendline resistance and was in a retest.
• JP Morgan, Swift, and other institutions are building on Chainlink.
• The sentiment for Chainlink was cautious though.

Chainlink (LINK) was not spared the recent drop in price due to liquidations that affected the overall crypto sector. Chainlink price was down about 4% in the last 24 hours as of press time, with a trading volume of about $746 million.

The CEO of Chainlink, Sergey Nazarov, highlighted how tokenized assets were reshaping the currency market. This was reflected in the price structure, with the currency having over 1.5M users on Paul Baron Network.

A deep analysis of more metrics on LINK could offer insights on what could unfold.

Has Chainlink Price Structure Shifted?

Chainlink’s price action broke a long-standing trendline level that had started resisting higher advances since the end of the bull market in December 2024. However, the current dip could present a buying opportunity that could take price back above $20.

According to PostyXBT on X (formerly Twitter), the prospect for LINK price to perform was there but lacked a clear driver. The well-known analyst noted lack of drivers to new ATH as hype and attention were key for crypto rallies. In a tweet, Posty wrote,

“But who is gonna bid this to new all time highs?”

PostyXBT had seconded Sergey Nazarov’s report that institutions were getting on board.

That being said, the price of Chainlink needs to stay above the current support for a run above $30. More importantly, if that is not met, price should stay above the broken trendline. This would ensure that the bullish case stayed intact.

A dip below the current support at $17 may not negate the bullish structure, as the price may want to retest the broken trendline. However, the current structure screams caution despite its overall outlook being bullish.

Chainlink Interoperability Protocol Attracting More Institutions

Chainlink Interoperability Protocol was driving this shift toward becoming a leader in tokenization. The CCIP was in the process of going live on Solana, Hedera, and the banking sector.

Chainlink’s page on X noted the protocol enabled the tokenization of real-world assets and helped the banking sector with the issuance of stablecoins. Among those in line were Swift, Mastercard, Euroclear, J.P. Morgan, Clearstream, Franklin Templeton and Fidelity International. All these institutions were billion-dollar or trillion-dollar companies, suggesting this could be Chainlink’s biggest year ever.

Chainlink’s protocol had bagged a huge portion (roughly 61%) of the total decentralized oracles with none of its competitors coming close.

Chainlink leadership is also looking to advance its campaign on this innovation. The Head of Solutions at the organization, Mark Raynes, will deliver a speech at Swift Community SIBOS 2025 alongside Goldman Sachs and Santander Banks about Oracle platforms.

This could bring another institution on board, considering the attendees were as big as J.P. Morgan. LINK is not only on the Interoperability sector but also moving its roots toward AI, stablecoins, DeFi, ETFs, GameFi, NFTs, memecoins, cross-chain transactions, and governments.

LINK Price Sentiment

The sentiment of LINK price among participants aligned with that of informed and retail traders. However, there were positives to pick as the sentiment was slightly bearish, approaching a bullish one.

The sentiment of the crowd and smart money at the time of writing was -0.62 and -0.51, respectively. This was an hint that the sentiment was slowly shifting from an overly pessimistic scenario to a more optimistic but cautious one.

Generally, the sentiment and structure remain slightly heavier on the bullish side, but bears could also change things. For that reason, it is worth staying cautious, but a confirmation of bullish could confirm potential continuation.

Disclaimer

This article is for informational purposes only and provides no financial, investment, or other advice. The author or any people mentioned in this article are not responsible for any financial loss that may occur from investing in or trading. Please do your research before making any financial decisions.