Chainlink (LINK) is emerging as a notable project in the crypto space, driven by increasing development activity, a narrative around the tokenization of real-world assets (RWAs), and technical indicators that may suggest further price movement. Currently trading around $12.30, a key level that previously served as support, many are observing if these indicators can lead to positive price action for LINK.

Tokenization and Its Impact

Tokenization is becoming more prominent in the crypto landscape, allowing physical assets to be mapped, stored, and traded on a blockchain. This process enables previously illiquid assets, like real estate, to achieve liquidity, attracting a wider range of investors. Chainlink’s oracle services are essential in this process, providing reliable data feeds between the underlying assets and decentralized applications.

Chainlink co-founder Sergey Nazarov has discussed the potential of asset tokenization for the Web3 industry. He predicts that the total value of RWAs could surpass that of cryptocurrencies in the coming years, largely due to investments from traditional financial markets. A recent report from Chainlink estimated that the market for tokenized assets could reach $10 trillion by 2030, positioning the project to benefit from this trend.

Development Activity on the Rise

Chainlink has recently ranked second among blockchain projects for development activity, a notable improvement from its previous position. This increase in development is generally seen as a positive sign, indicating growth and sustainability for the project.

Additionally, last week, the Chainlink non-circulating supply wallet unlocked 18.125 million LINK tokens, which were deposited into Binance. Historical data shows that similar unlocks have often preceded price increases about a month later, contributing to a positive outlook.

Technical Analysis of LINK

Currently, Chainlink is trading at a significant price level of $12.30. While it has seen an 18% decline year-to-date and remains over 76% below its all-time high from May 2021, technical indicators suggest a potential change in direction.

LINK has managed to stay above a long-term falling channel since breaking out on September 18. The daily chart’s Moving Average Convergence Divergence (MACD) indicator crossed above its signal line on September 10, signaling a possible shift toward bullish momentum. The consistent green histograms that have followed this crossover suggest an upward trend.

For support levels, LINK has immediate support at $8.09 and long-term support at $5.68. The outlook appears more positive if it can maintain its position above these support levels.

Futures Market Interest

In addition to spot trading, Chainlink’s open interest in futures markets has increased this month. Data from CoinGlass shows that the dollar value locked in open futures contracts tied to LINK has grown by 10.55% in the past 24 hours, reaching 15.46 million LINK. This rise in open interest often correlates with increased trading activity and expectations of price changes.

Conclusion: What’s Next for Chainlink?

In summary, Chainlink shows potential for price movement due to rising development activity, a focus on the tokenization of real-world assets, and favorable technical indicators. As more investors recognize the significance of tokenization and Chainlink’s role in this area, the market may respond positively.

With a critical support level at $12.30 and bullish signals in both development and market sentiment, Chainlink (LINK) may be positioned for a notable move. Monitoring these indicators will be important for traders and investors looking to assess the next price trends.