Chainlink price rose for the third straight day as cryptocurrency prices bounced back. The LINK token rose to a high of $8, which was the highest level since August 17. It has jumped by more than 28% from its lowest level this month, giving it a market cap of over $393 million, making it the 23rd biggest cryptocurrency in the world. It sits between Litecoin and Near Protocol.
DeFi industry rebounds
Chainlink is the biggest oracle network in the blockchain industry. According to DeFi Llama, it is used by over 197 Decentralized Finance (DeFi) networks like Aave, Compound, Frax, Synthetic, dYdX, and Venus among others. It has a total value secured (TVS) of more than $13.4 billion. Some of its top competitors are WINKLink, Pyth, and Band Protocol among others.
Chainlink price has made a comeback in the past few days. Like with Ethereum Classic, analysts believe that this rebound is due to the upcoming Ethereum Merge. Merge is a situation that will transform Ethereum from a proof-of-work (PoW) platform into a proof-of-stake (PoS) network.
This transition will make it possible for its developers to introduce more upgrades such as sharding. Sharding and other upgrades will make Ethereum substantially faster and less costly than other networks.
As a result, Chainlink, which supports Ethereum applications will likely see more adoption from developers after the upgrades.
The other key catalyst for Chainlink price is the upcoming SmartCon Conference by Chainlink. The event will see some of the top people in Chainlink’s ecosystem speak on the future of Web3. Some of the top speakers of the event will be Eric Schmidt, the former CEO of Google, Sergey Nazarov, the founder of Chainlink, Sam Bankman of FTX, and Anatoly Yakovenko of Solana Labs.
Other speakers of the New York event are the founders of companies like Synthetix, Compound, Oasis Labs, and Fantom.
Chainlink price prediction
The daily chart shows that Chainlink price has been crawling back in the past few days after it formed a strong support at $5.93. It has managed to move above the 25-day and 50-day moving averages while the MACD is attempting to move above the neutral point.
However, Chainlink has also formed what looks like a head and shoulders pattern. Therefore, there is a likelihood that the coin will resume the bearish trend. A drop below the important support level at $6 will signal that there are still more sellers in the market.
