Chainlink’s value jumped over 5% after Mantle successfully transitioned its $2.5 billion Super Portal to Chainlink’s cross-chain infrastructure, further propelling a cryptocurrency market uptick driven by positive U.S. inflation data.
Summary
- Chainlink’s price rose by more than 5% following Mantle’s integration of its $2.5 billion Super Portal with Chainlink’s CCIP.
- Whale accumulation, increasing open interest, and significant wallet growth have strengthened LINK’s bullish momentum.
- Technical analysis shows that $8.40 is the next vital resistance level, while a drop below $8.00 could threaten the bullish trend.
According to crypto.news, Chainlink (LINK) was trading around $8.29 after briefly hitting $8.40, reflecting a weekly gain of about 7%.
This increase coincided with Bitcoin rising above $64,600 and Ethereum approaching $1,875, as U.S. inflation data elevated expectations for a potentially more lenient Federal Reserve policy later this year. Additionally, the total cryptocurrency market capitalization grew by over 3%, reaching around $2.30 trillion.
The infrastructure upgrade by Mantle reinforces a series of recent enterprise partnerships with Chainlink. Aave has selected the protocol for automated vault rebalancing, and Robinhood has integrated Chainlink’s infrastructure into its expanding Layer-2 framework.
On-chain adoption is on the rise, with the number of non-empty Ethereum wallets holding LINK exceeding 900,000 for the first time.
On-chain accumulation indicates that large investors may have positioned themselves before the news rather than responding afterward. Wallets containing over 1,000 LINK reached a yearly high, and the count of addresses holding over 100,000 LINK has climbed to a record 805.
These acquisitions have alleviated much of the selling pressure from the impending unlock of 21 million LINK tokens, thereby minimizing the impact of the additional supply entering the market.
Derivatives traders have also participated in the upward movement. Open interest rose nearly 10% alongside the price increase, suggesting new leveraged interest rather than just a fleeting rise in the spot market. The combination of increasing prices and rising open interest usually indicates that new positions are being added rather than merely closing existing short positions.
Technical breakout identifies $8.40 and $8.70 as critical levels
The daily chart shows LINK testing the upper edge of a descending wedge that has influenced its price since early June. The jump on Tuesday pushed the token above $8.20, approaching immediate resistance near $8.40, where sellers had historically turned back the price during trading sessions.
A confirmed daily close above this level would reinforce the breakout narrative and lead to the next resistance zone around $8.70, followed by significant psychological resistance at $9.00.
Momentum indicators show improvement as well. The daily RSI has climbed to roughly 60 after recovering from oversold territory, signaling that buyers have regained control without hitting overbought levels. The Aroon Up indicator skyrocketed to 100, while the Aroon Down remains in the single digits, highlighting a renewed bullish trend.
On the 4-hour chart, the MACD has completed a bullish crossover above the signal line, while the Chaikin Money Flow stays positive above zero, indicating a consistent influx of capital into the market.
CoinGlass liquidation data supports the technical outlook. The one-week heatmap illustrates a significant cluster of leveraged short positions between $8.15 and $8.30, many of which were liquidated during the recent rally. Beyond current prices, another important liquidity area exists around $8.45-$8.70, potentially attracting buyers if momentum remains strong.
Breaking below $8.00 support could weaken bullish sentiment
Nonetheless, several risks could disrupt LINK’s upward momentum. Markets remain sensitive to upcoming U.S. Producer Price Index data and any statements from the Federal Reserve that may challenge the outlook for a more relaxed monetary policy. Renewed geopolitical tensions or a surge in oil prices could dampen risk appetite in digital markets.
From a technical viewpoint, failing to hold above the $8.20 breakout level would shift attention to $8.00 as a critical support level.
A decisive move below this could push LINK back toward the $7.70-$7.50 demand zone, where the liquidation heatmap indicates another substantial cluster of leveraged positions. Such an event would invalidate the recent breakout and stall any attempts to reach the $9.00 resistance area.
Disclosure: This article does not constitute investment advice. The content and materials presented here are for educational purposes only.
