Chainlink (LINK) to $100? Here’s the RWA narrative that could drive the surge!

Chainlink [LINK], the leading oracle platform, was in the news once again recently after LunarCrush mentioned it in a post on X. The social intelligence platform highlighted Chainlink as the leading project in the real-world asset sector, based on social media engagements.

It should be noted that as an oracle platform, Chainlink is not directly an RWA asset. Instead, it’s the backbone for the sector’s infrastructure. Recent partnerships, such as with FTSE Russel and the collaboration with the S&P Dow Jones Indices, highlight the trust placed in Chainlink.

Some market participants believe that RWA is one of the most attractive sectors in the market. In fact, the total RWA value is up from $1.15 billion at the start of 2023 to $18.17 billion at the time of writing.

Increasing participation from major institutions could accelerate this growth.

Assessing the impact on Chainlink prices

Is a $100-target too high?

In recent years, Chainlink has been fond of the $14-$30 zone. It has been unable to convincingly climb out past the $30-$32 resistance since 2021. Similarly, the $10-$12 region has also been an important support zone over the past two years.

Source: Cryptollica on X

In a post on X, analyst Cryptollica noted that Chainlink is approaching the end of a 4-year macro downtrend. It is at the end of a 5-year compression. The obstinate defense of the $10-region, combined with the volatility compression, could set up a powerful bullish breakout.

Moreover, the weekly RSI reading of 34 marked a cyclical Chainlink low over the past three years. The RSI’s revisit to the same level implied that LINK might be ready for another recovery, offering investors a buying opportunity.

In other news, the launch of the Grayscale Spot ETF could spur demand and sentiment.

Final Thoughts

• As the backbone of the RWA sector, Chainlink has potential to grow, and LINK could appreciate dramatically.
• The long-term compression and the defense of the $10 support zone in recent years could set up a sizeable bullish breakout for LINK.