- LINK surged by 54.67% in a month, testing $20 resistance amid rising volume and a strong RSI of 83.08.
- Chainlink’s ACE launch and 59% share in RWA verification boosted demand for compliant blockchain infrastructure.
- LINK’s 0.91 ETH correlation and altcoin ETF inflows support a rally toward $22.50–$25.00 if $20 flips to support.
Chainlink (LINK) is showing notable strength following rallies from XRP, Ethereum, and Solana. On July 21, at press time, LINK was up by 22.73% in the past week and 54.67% over the past month.
The asset is trading at $19.63, up 0.46% in the past 24 hours, while its market cap is at $13.31 billion. Increased 24 hour volume, now at $1.15 billion up by 46.37%, adds to growing interest.
The surge follows developments in compliance technology, ETF momentum across the altcoin sector, and technical signals indicating a strong breakout. With LINK testing a key resistance zone just below $20, the question is will it follow the path of its peers?.
Compliance Integration and Real World Assets Fuel Demand
The launch of Chainlink’s Automated Compliance Engine (ACE) on June 30 was significant. According to Sergey Nazarov, ACE targets $100 trillion in potential institutional capital through blockchain.
It supports compliant transfers and monitoring, aligning with the rising demand for tokenized real world assets (RWAs). Currently,RWAs excluding stablecoins total $25.4 billion in value. Chainlink oracles now verify 59% of non-stablecoin RWA total value locked.
This growing infrastructure may have influenced LINK’s current uptrend, which began from the $12.50 level in late June. The asset’s upward move has gained pace alongside broader altcoin rotation.
The Altcoin Season Index rose by 235% month over month, now standing at 57/100. Bitcoin dominance dropped from 64% to 59.95%, further fueling momentum for non BTC assets like LINK.
Technical Momentum Builds as LINK Tests Resistance
LINK’s rally features strong green candlesticks and rising volume, currently at 2.03 million, with no significant retracement since late June. The price recently tested $19.73, approaching a key resistance zone near $20.
This same level acted as resistance in January 2025. The RSI is at 83.08, well above the 70.33 level, indicating aggressive buying pressure. However, the elevated RSI also suggests a potential short term consolidation.
The MACD line has crossed above the signal line, with green histogram bars increasing, showing strong internal momentum. If LINK flips $20 into support, a breakout could target the $22.50 to $25.00 range. However, any rejection may push the price down to the $17.50–$18.00 area before resuming higher.
Altcoin Rotation and ETF Sentiment Extend LINK’s Rally
Broader sector moves continue to support Chainlink’s strength. Ethereum’s spot ETFs attracted $2.18 billion in inflows last week, per CoinShares, while its price jumped 25%. Ethereum ETF assets now total $15.72 billion, up 48% month over month.
This institutional wave has lifted other altcoins, especially oracles, where LINK maintains a high correlation to ETH at 0.91. Meanwhile, XRP and Solana also experienced strong rallies. XRP rose by 18.96% weekly, with futures open interest hitting $5.29 billion up by 14.42%.
Solana surged on news of a spot ETF application and growing corporate holdings, including Upexi Inc.’s $273 million position. LINK’s rise appears to follow this altcoin momentum trend, gaining strength as market attention rotates further from Bitcoin.
Potential Price Targets Based on Current Momentum
If LINK maintains its bullish momentum and flips $20 into solid support, prices could advance toward $22.50 to $25.00.
However, if RSI conditions lead a pullback, downside pressure may test the $17.50–$18.00 support range before another upward attempt. Chainlink’s recent performance shows strength driven by institutional integration, technical momentum, and sector rotation.
As XRP, ETH, and SOL rally on ETF and regulatory clarity, LINK’s position appears increasingly favorable. With the $20 level acting as a key zone, continued volume and sector support will determine if Chainlink takes the lead among altcoins next.
