Chainlink Unveils CCIP Upgrade — LINK Price on Verge of 120% Increase

Key Takeaways

• Chainlink unveiled CCIP private transactions on Oct. 22.
• Chainlink (LINK) trades in a long-term descending channel.
• Can LINK break out and move toward its yearly high?

Chainlink (LINK) was one of the biggest gainers in the second half of 2023 but has slowed since. After reaching its yearly high in March, LINK started to decline by 64% by the end of August.

Nevertheless, the price has increased, and aims to break out of the long-term channel. Today’s Chainlink price aims to break out from a parallel channel, possibly boosted by positive news regarding its Cross-Chain Interoperability Protocol (CCIP).

Let’s analyze the price action and see if a breakout is likely.

CCIP Private Transactions

On Oct. 22, Chainlink announced private transactions in its CCIP.  The Australia and New Zealand Banking Group (ANZ) will be the first financial institution to test it.

Chainlink’s CCIP Private Transactions allow financial institutions to do cross-chain transactions while keeping sensitive details like data, token amounts, and counterparties private.

This ensures compliance with regulations and enables greater adoption of blockchain by maintaining confidentiality in institutional transactions.

Nigel Dobson, banking services lead at ANZ, commented:

“Chainlink’s new cross-chain privacy capabilities have the potential to further accelerate institutional blockchain adoption by enabling end-to-end privacy between blockchain networks.”

The main new feature of these transactions is the Blockchain Privacy Manager . Using this, CCIP Private Transactions enable cross-chain transfers between private blockchains with end-to-end encryption, ensuring transaction details like token amounts and participant information remain confidential while allowing authorized parties access.

Can Chainlink Break Out?

The weekly time frame LINK chart shows that the price has fallen inside a descending parallel channel since the yearly high in March. The downward movement culminated with a low of $8.08 on Aug. 5.

Chainlink bounced afterward, creating a long lower wick (white icon). the bounce validated the channel’s support trend line and the horizontal and Fibonacci support at $8.70.

LINK has increased since and nearly reached the channel’s resistance trend line this week.

So far, the channel has existed for 224 days. A breakout from it will confirm that the correction is over. If so, the next resistance will be at $18.20.

Technical indicators do not yet confirm the possibility of a breakout, though they show preliminary signs that one will happen. The Relative Strength Index (RSI) broke out from the resistance trend line (black) and reached 50.

The Moving Average Convergence/Divergence (MACD) has made a bullish cross and could move above 0. If it were to happen alongside a price breakout, it would confirm that the bullish trend reversal is underway.

Wave Count Predicts Highs

The long-term wave count gives a bullish Chainlink price prediction, implying that a breakout from the channel will happen.

The most likely count shows a completed five-wave increase (white) and A-B-C correction (black).

If the count is accurate, the LINK price has started a new upward movement and is currently in wave one. If it has the same length as the previous one, LINK could reach a high of $26.14, increasing by nearly 120%.

A breakout from the channel will confirm that the upward movement has started, while a movement above the $18.50 horizontal resistance area will accelerate the upward movement.

Chainlink Increase Incoming

The Chainlink price shows positive signs in long-term time frames relating to the price action, indicator readings, and wave count.

The positive news regarding the CCIP private transactions could also boost the price. A breakout from the long-term channel will confirm that a trend reversal is underway.