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Chainlink (LINK) has failed to record a rally as the price faced rejection at $25, plunging to a low of $22.74 in the last 24 hours. The asset continues to suffer volatility in the broader cryptocurrency market but looks likely to recover soon amid its Cardano integration push.
Cardano, Chainlink integration could boost DeFi ecosystem
Notably, the trading volume of LINK has surged despite the price fluctuations. Within this period, the volume has spiked by 77% to $1.24 billion.
This suggests that investors are bullish and anticipate a rally in the price of the asset. They likely consider the dip as a buying opportunity to accumulate more of the asset before it rebounds.
As of this writing, Chainlink's price was changing hands at $22.92, which represents a 3.44% decline in the last 24 hours. LINK had earlier reached a peak of $23.85 but failed to hold above the $23.05 level, triggering bearish momentum.
However, the spike in trading volume and prospects of integrating Cardano with Chainlink might serve as bullish catalysts.
For clarity, Charles Hoskinson, Cardano founder, has outlined plans to partner with Chainlink.
Hoskinson noted that such integration could bring liquidity and credibility to the weak DeFi ecosystem of Cardano. The oracle network could be leveraged to ensure smart contracts are executed securely and accurately.
Chainlink deal with U.S. government
Another bullish indicator that could boost the price outlook for Chainlink is its recent partnership with the U.S. Department of Commerce.
As per the collaboration, Chainlink will be responsible for deploying new feeds critical to delivering the right data from the Bureau of Economic Analysis.
Investors backing the asset remain optimistic that the price could rebound and retest the $28 level. As projected by Ali Martinez, a notable crypto analyst, LINK is facing a bullish retest that could push its price upward. The ecosystem whales might play a significant role in ensuring this happens.
Dan Burgin
Vladislav Sopov
U.Today Editorial Team