LINK news update: Pro crypto convergence in TradFi and DeFi may start rally to $18

Key point:

• Convergence of TradFi and DeFi could propel LINK past $18 and start a new uptrend.

At the RWA Summit Cannes, Nelli Zaltsman, JPMorgan Kinexys’ head of blockchain payments innovation, said that decentralized finance and traditional finance are converging rapidly. The banking giant, Chainlink , and Ondo Finance (ONDO) recently completed a crosschain Delivery versus Payment (DvP) test transaction, involving a permissioned payment network and a public testnet.

Could traditional institutions moving onchain propel LINK higher? Let’s analyze the charts to find out.

LINK price prediction

LINK has been consolidating inside a large range between $10.94 and $18 for the past several months. 

The pair has risen close to the $18 overhead resistance, which is likely to attract strong selling by the bears. If the price turns down from $18 but finds support at the 20-day exponential moving average ($14.85), it shows a positive sentiment. That increases the possibility of a break above the $18 level. If that happens, the pair will complete a double-bottom pattern, which has a target objective of $25.06.

Instead, if the price turns down sharply from $18 and breaks below the 20-day EMA, it signals that the range-bound action may continue for a few more days.

The bulls have been arresting the pullback at the 20-EMA on the 4-hour chart, indicating that every minor dip is being purchased. The pair could turn down from $18, but a rebound off the 20-EMA suggests that buyers remain in control. That enhances the prospects of a break above the overhead resistance.

This positive view will be invalidated in the near term if the price turns down sharply and breaks below the 50-simple moving average. The pair may then slump to $14.70 and later to $14.

This article does not contain investment advice or recommendations. Every investment and trading move involves risk, and readers should conduct their own research when making a decision.