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- Chainlink was the best-performing large-cap crypto in the week leading to the inauguration, edging Solana and XRP to peak at $26.8.
- LINK reacted positively to Donald Trump’s WLFI’s previous announcement that it had adopted Chainlink’s standard for on-chain data and cross-chain connectivity.
When Donald Trump won the November 5th polls, Dogecoin was the first major crypto to surge, doubling its value in less than a week. Other memecoins followed, kickstarting an $80 billion memecoin surge over the next four weeks. As Trump’s inauguration neared, DOGE was expected to lead the charts again. However, it was Chainlink that burst out, and with the backing of Trump’s DeFi project, LINK could have a record-setting year.
LINK trades at $26.2, gaining nearly 6% in the past day despite a $200 billion dip in the overall market cap after Trump was officially sworn in. For one, the new president failed to give crypto any mention, and despite signing nearly 100 executive orders hours after he was sworn in, none was about crypto.
Still, LINK traded strongly in the past 24 hours, with only Litecoin recording higher gains in that time among the top 20 coins by market cap. This was despite a 23% dip in its trading volume to hit $2.26 billion.
LINK’s rally in the week leading up to the inauguration was tied to Chainlink’s association with World Liberty Financial, the Trump DeFi project. In November, a week after the election, the project announced that it had adopted Chainlink for “solving the critical security, interoperability, and onchain data problems” that come with establishing a DeFi project. WLFI first integrated the Chainlink Price Feeds on the Ethereum mainnet. In December, it then splashed $4.7 million on LINK to affirm its commitment to the ecosystem’s growth.
Chainlink is not the only blockchain project with links to WLFI. As we reported today, the platform purchased over $100 million worth of WBTC, ETH, AAVE, and more.
What’s Next for Chainlink?
LINK is consolidating above $25, turning this previous resistance into support. The next level of resistance, if buying levels remain elevated this week, is $27.5, which could set the stage for the token to hit $30 for the first time since November 2021. Conversely, if the $25 support fails, the token will dip to retest $22.21, the midline of its Bollinger Bands.
However, analysts remain bullish. One analyst noted that the token has been trading in a descending wedge since hitting a three-year high in December and only breached the upper trendline in the past week, which sets it up for massive gains of up to $52.
And yet, LINK’s biggest tailwind might not be technical. Chainlink remains the lifeblood of decentralized applications, with its cross-chain messaging, oracles, and other interoperability solutions powering dApps that handle trillions of dollars annually.
With Trump now in power (Chainlink founder Sergey Nazarov was rubbing shoulders with the who’s who on Trump’s inaugural dinner) it could be Chainlink that benefits the most. Some, like analyst Ali Martinez, believe this will translate to mega gains for LINK and predict it will hit $50.
