The Chainlink (LINK) price is currently testing a critical resistance zone after a strong recovery from its lows around $7. As of now, the price sits at $15.29, marking an 8.25% increase in the past 24 hours, accompanied by a 200% surge in trading volume. This surge follows the launch of CCIP 2.0 by Chainlink, introducing institutional-focused security, compliance, and cross-chain settlement features. Notable participants in this launch include AWS, ANZ, Fidelity International, SBI Digital Markets, Sygnum, and Taurus.
Despite the breakout, the network activity has seen a decline, raising questions about the sustainability of LINK’s upward momentum. Chainlink’s daily active users have dropped significantly from over 300 to just 57. This decrease is juxtaposed with LINK’s price surge from below $9 to above $15, indicating a divergence between price movement and network activity.
Nevertheless, the decline in active addresses does not necessarily negate the bullish price trend, especially considering the shift towards institutional infrastructure rather than retail network engagement.
Looking at the technical analysis, the LINK price has made a strong recovery since June, approaching a key resistance level at $15.32. A decisive daily close above this level could pave the way for further gains towards $16.56 and $18.03. The current bullish momentum is reflected in the RSI at 73.56, indicating overbought conditions and strong buyer control. However, a failure to establish support above $15.32 could lead to short-term profit-taking, with $13.32 serving as the initial support level.
In terms of a price prediction for October, the chart suggests several key levels to watch: $15.32 as the breakout trigger, followed by resistances at $16.56 and $18.03. If momentum continues to expand, a move towards $20 to $23 may be possible, contingent on maintaining the current breakout structure and attracting increased participation. Conversely, a failure could see LINK retreat towards $13.32.
Overall, the LINK price is at a critical juncture, with the sustainability of its recent rally dependent on both technical factors and network activity.