Chainlink Price Forecast: LINK trades sideways after Visa-led cross-border settlement milestone

Chainlink eyes Visa-led cross-border payments

Visa, in collaboration with ANZ, ChinaAMC, and Fidelity International, has completed a cross-border settlement pilot using the Chainlink oracle protocol, a system that connects blockchains to external data sources. The settlement used the Hong Kong Monetary Authority’s e-HKD program, a project introducing a digital version of the Hong Kong dollar. This enabled Chainlink to transfer regulated digital assets in a secure, automated, real-time environment.

Chainlink stated that its protocol played a critical role in the cross-border transfer solution between ANZ's private DASChain and the public Ethereum Sepolia network. The protocol’s data, interoperability, and compliance standards are key to addressing the challenges facing institutional-grade smart contracts.

“Chainlink's Digital Transfer Agent (DTA) technical standard automates tokenized fund unit issuance as part of cross-chain transactions while leveraging the Chainlink data standard to fetch on-chain NAV data, enabling near-real-time settlement,” Chainlink stated on X.

Chainlink cross-chain settlement | Source: Chainlink

According to Chainlink, cross-border settlement solutions indicate that institutional smart contracts need additional capabilities to operate in global markets. These include reliable data sources, cross-chain interoperability, privacy, and built-in compliance.

Technical outlook: Chainlink holds key support

Chainlink is rangebound between support at $8.00 and resistance at $10.00. The oracle token's near-term bias is cautiously bullish, with the Moving Average Convergence Divergence (MACD) indicator holding above its signal line on the daily chart. Green histogram bars are expanding, prompting traders to increase exposure.

The Relative Strength Index (RSI) around 53 on the same chart signals modest bullish pressure rather than overbought conditions. Nonetheless, the LINK spot price remains well below the 50-day, 100- day and 200-day Exponential Moving Averages (EMAs), which are clustered between $10.00 and $13.53. All three moving averages are drifting lower, keeping the broader structure corrective despite the short-term recovery.

Immediate resistance lies with the descending trendline and the 50-day EMA at $10.00. A daily close above this confluence supply zone would open the door toward the 100-day EMA at $11.52 and then the 200-day EMA at $13.53. On the downside, initial support appears at $9.08, the daily low, which is protecting against a deeper pullback toward Thursday's trough at $8.68 and the range support at $8.00.

As long as LINK holds above $9.08 and presses against the descending trend line, the risk skews toward an eventual topside break rather than a renewed slide toward the recent range floor.

Bitcoin, altcoins, stablecoins FAQs

What is Bitcoin?

Bitcoin is the largest cryptocurrency by market capitalization, a virtual currency designed to serve as money. This form of payment cannot be controlled by any one person, group, or entity, which eliminates the need for third-party participation during financial transactions.

What are altcoins?

Altcoins are any cryptocurrency apart from Bitcoin, but some also regard Ethereum as a non-altcoin because it is from these two cryptocurrencies that forking happens. If this is true, then Litecoin is the first altcoin, forked from the Bitcoin protocol and, therefore, an “improved” version of it.

What are stablecoins?

Stablecoins are cryptocurrencies designed to have a stable price, with their value backed by a reserve of the asset it represents. To achieve this, the value of any one stablecoin is pegged to a commodity or financial instrument, such as the US Dollar (USD), with its supply regulated by an algorithm or demand. The main goal of stablecoins is to provide an on/off-ramp for investors willing to trade and invest in cryptocurrencies. Stablecoins also allow investors to store value since cryptocurrencies, in general, are subject to volatility.

What is Bitcoin Dominance?

Bitcoin dominance is the ratio of Bitcoin's market capitalization to the total market capitalization of all cryptocurrencies combined. It provides a clear picture of Bitcoin’s interest among investors. A high BTC dominance typically happens before and during a bull run, in which investors resort to investing in relatively stable and high market capitalization cryptocurrency like Bitcoin. A drop in BTC dominance usually means that investors are moving their capital and/or profits to altcoins in a quest for higher returns, which usually triggers an explosion of altcoin rallies.

(The technical analysis of this story was written with the help of an AI tool.)