LINK seeks long-term value growth through institutional presence, but this may not materialize in the current cycle.
- LINK has implemented strategic tools to attract institutional investors However, the underlying network may present challenges
Chainlink [LINK] has hit $12 twice in the past two months, but faced resistance each time. The first instance led to a solid retracement, while this time, green candles have emerged more quickly.
Priced at $11.28 at press time, the next challenge for bulls is undoubtedly breaking through the $12 barrier. According to analysts, this might occur before the end of the Q4 cycle.
While Bitcoin’s retest of the $62k resistance is contributing to the overall optimism – bolstered by the general October hype – there may be more underlying factors driving investors to bet on LINK’s future value.
LINK is deploying strategic partnership
In its bid to strengthen its institutional presence, Chainlink Labs has partnered with Taurus , a top digital asset infrastructure provider. This strategic collaboration aims to enhance LINK’s transaction bandwidth, a critical factor in maintaining blockchain competitiveness.
If successful, this could spark strong institutional interest, significantly boosting LINK’s visibility and paving the way for significant long-term value growth.
However, despite these initiatives, stakeholders have begun pulling out of LINK’s network. The same is evidenced by the chart below.
Source : Artemis Terminal
September’s volatility led LINK’s DeFi platform to lose a significant share of its total value locked (TVL), dropping from a peak of $555 million a week ago to $462 million at press time.
Adding to the concern, the daily transaction count, which hit a million in mid-July, has fallen to a three-month low of 195k.
Put simply, these collaborative projects are emerging during a period of internal crisis for LINK. If this strategy works as intended, LINK could be on the brink of a near-term price correction.
Backed by big players
Whale wallets, which make up 49% of the large holder cohort, are holding 489 million LINK coins. They have been actively influencing LINK’s value throughout September.
Earlier in the month, these whales were offloading their holdings. However, recent days have seen a notable shift, with large holders beginning to accumulate tokens once more.
Source : IntoTheBlock
The resurgence in whale accumulation has helped LINK flip the key $10 resistance into support. With this critical flip achieved, breaking through the $12 barrier seems feasible.
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However, internal challenges within the LINK network – reflected in declining user activity – stand in sharp contrast to speculation that LINK could soar to $40 by the end of the next bull cycle.
Overall, the current state appears somewhat bullish. If partnerships can restore confidence among institutional players, a breakout may soon follow – Something the Chainlink network currently lacks.
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