Chainlink has strengthened recently, not only due to the overall recovery of the crypto market but also driven by various business developments. Foreign media commented that LINK has risen by more than 45% in the past month, but to further confirm this rebound as a more sustained upward trend, $12.7 remains the most critical resistance level.

The recent rise has been driven by three factors.

The report mentions that there are mainly three factors driving the increase in LINK.

First, SWIFT service provider Bottomline and Chainlink have reached a cooperation, enabling over 600 banks to access blockchain settlement capabilities through Chainlink. Second, the state of Wyoming in the United States has incorporated Chainlink's reserve certification service into its state-level stablecoin FRNT for real-time tracking of reserves and supply. Third, the overall risk appetite in the market has increased, which has also driven up the value of LINK.

The report also mentioned that the statement by Federal Reserve Governor Christopher Waller alleviated market concerns about aggressive interest rate hikes in the middle of this month, which provided support for risk assets as well.

$12.7 is considered a key resistance level.

From the perspective of trend structure, LINK fell below its previous symmetrical triangle range at the beginning of the year, subsequently dropping to around $7.2, with a decline of over 40%. After that, the price formed a temporary bottom between $7.2 and $8.6, and after several months of consolidation, it broke through the resistance levels of $8.6 and $10.9.

Commentary articles suggest that to confirm a more definitive reversal, LINK needs to break through the supply zone above $12.7, and it would be ideal if it can hold this level during daily and weekly closes. If this resistance is effectively overcome, there is a possibility of reaching the $14.6 level in the subsequent period.

• Increase of approximately 7.13% in the past 24 hours
• Cumulative increase of approximately 45.78% in the past month
• The price mentioned in the current text is approximately $11.82.

Macroeconomics and policies remain external variables.

In addition to the progress of the project itself, reports suggest that the situation in the Middle East may still affect market risk appetite. If there is a delay in the voting by the U.S. Senate on CLARITY Act, it could also bring new disruptions to the crypto market.

In addition, although recent statements by Federal Reserve officials have alleviated concerns about interest rate hikes, inflation remains above 2% and is near its highest level in several months. The subsequent policy path will continue to affect the performance of risk assets, including LINK.

If the price weakens again, whether the previous low of $7.2 can be held will become the next point of observation. If it is lost, the market may retest the historical support area around $5.4.