Chainlink (LINK) Price Stalls Despite JP Morgan and Ondo Deal — Key Support in Sight

Key Takeaways

• Chainlink, Ondo Finance & J.P. Morgan completed a DvP transaction.
• Chainlink’s (LINK) price has increased by 80% since its April 7 lows.
• Will LINK retrace after this rally, and if so, where will it find support?

Chainlink’s price started a rally on April 7, bouncing off a long-term diagonal and horizontal support before rallying 80%. However, momentum is fading.

Despite positive news about collaboration with Ondo Finance and J.P. Morgan, Chainlink’s price shows short-term weakness, indicative of a local top.

Has LINK’s rally finally run out of steam, and if so, where will the price find support? Let’s find out.

Chainlink’s Successful Collaboration

On May 14, Chainlink announced it had completed a cross-chain Delivery-versus-Payment (DvP) transaction in collaboration with Ondo Finance and Kinexys by J.P. Morgan.

A DvP transaction eliminates counterparty risk when exchanging an asset and a payment simultaneously.

Ondo Finance provided the asset in this specific transaction , a tokenized version of short-term U.S. Treasuries.

J.P. Morgan handled the payment on its permissioned blockchain, Kinexys, while Chainlink secured the transaction.

The transaction marked the first time a DvP transaction has been conducted across different blockchains, in this case, J.P. Morgan’s permission blockchain and the Ondo Chain testnet.

Chainlink Price Bounces

The weekly time frame chart shows that Chainlink’s price has increased nearly 80% since bouncing on April 7.

In addition to preventing a breakdown from a long-term diagonal support, LINK reclaimed the $12.50 horizontal support area.

Technical indicators show bullish signs. The Relative Strength Index (RSI) and Moving Average Convergence/Divergence (MACD) are increasing.

The indicators have nearly their bullish thresholds (black circles) at 50 and 0, respectively.

So, the weekly time frame suggests the LINK trend is bullish as long as the price trades above the $12.50 area and the ascending support trend line.

Short-Term Retracement

While the weekly chart gives a bullish prediction, the daily one suggests a retracement is due for two main reasons.

Firstly, LINK has completed a five-wave upward movement (green) since April 7. If the count is accurate, LINK is now in an A-B-C correction.

Secondly, the RSI and MACD have generated bearish divergences (orange), increasing the likelihood of a correction.

If one occurs, the main support level will be $14, with minor support at $14.95 and $13.10.

Despite the chances of a short-term decline, the five-wave increase suggests LINK’s long-term trend is bullish, aligning with the weekly readings.

LINK Price Shows Weakness

Chainlink’s price showed tremendous resilience by bouncing on April 7 and reclaiming two crucial support levels.

Chainlink news is also positive, highlighting a collaboration with Ondo Finance and J.P. Morgan.

While the short-term momentum is fading, LINK’s long-term trend is bullish.

The most likely prediction suggests that Chainlink’s price will find support at around $14 before resuming its upward movement.