Chainlink (LINK) price has taken a serious hit recently. The digital asset has dropped by 40% from its $26.44 yearly high to around $18.59.

While the price action may seem like a temporary setback, an undercurrent of optimism is building beneath the surface.

As the blockchain ecosystem evolves, several factors are potentially stacking up to launch LINK to new heights.

The key question is whether it can regain momentum and break through the $20 mark. If it does, the token could see significant growth shortly.

Current LINK Price Outlook: Growing Sell-Off

Chainlink’s recent price drop to $18.66, has spooked some traders, especially with large holders offloading significant portions of their holdings.

Over 4.13 million LINK tokens flooded the market in a matter of days. This added pressure to the price and triggered widespread speculation.

However, this selloff might not signal a long-term decline. On-chain data and technical indicators suggest it is likely part of the natural market cycle.

Speculatively, when the cycle is complete, it may usher in a period of accumulation

On the bright side, the decreasing supply of LINK tokens on exchanges indicates that investors are looking beyond short-term fluctuations.

As more players choose to hold rather than sell, the selling pressure is easing.

Analysts believe this development could set the stage for a future rebound. With investor sentiment shifting, LINK may be gearing up for its next move.

Analyst and Technical Insight Amid Accumulation

On the technical front, the current LINK chart shows bullish signs. Despite the downturn, analysts are seeing an accumulation phase in LINK.

One of the most significant patterns that investors are watching closely is the completion of a cup-and-handle formation.

This technical formation is a classic bullish indicator that has historically suggested a strong rally after the handle finishes forming.

More recently, LINK has also set up a falling wedge pattern, typically leading to a breakout once resistance is breached.

Crypto analysts have noted the potential of these patterns. Nebraskangooner highlighted LINK’s current consolidation as a key point of interest.

He suggested that if LINK holds above the current $18 support, a breakout above $20 or higher is possible.

Analysts like TheFomoLabs are even more optimistic. They believe if the upward momentum continues, LINK could skyrocket to $75.

These patterns and a reduction in circulating LINK supply generate excitement about the coin’s future.

The Forces Behind Chainlink Price’s Potential Surge

Industry analysts are watching key developments that could raise LINK’s price.

The interest in LINK is not just based on technical factors; significant changes are also driving its surge.

Recently, U.S. President Donald Trump’s World Liberty Financial (WLFI) fund started holding LINK. WLFI bought over $730,000 worth of LINK.

This has led to speculation that more institutions are becoming interested in LINK, which could help it grow.

Another reason for LINK’s positive outlook is its growing role in Real-World Asset (RWA) tokenization.

As tokenized assets are needed, Chainlink’s decentralized oracle network becomes more indispensable.

Major financial firms like BlackRock and Franklin Templeton are getting involved in blockchain tokenization.

Remarkably, Chainlink’s Cross-Chain Interoperability Protocol (CCIP) is helping connect traditional assets to the digital world.

There is also talk about a possible Chainlink ETF approval by the U.S. Securities and Exchange Commission (SEC).

If approved, institutional investors might invest heavily in LINK, pushing the price up.

Investors are closely watching LINK’s next moves. Chainlink price could surge if the technical and fundamental factors stay strong, potentially reaching $20 or beyond.

The post Chainlink (LINK) Price Prediction: Is $20 On The Horizon? appeared first on The Coin Republic.