LINK Breaks Above $14 After Jasmy Adopts its Cross-Chain Solution: Can it Rip Past the $17 Resistance?

Chainlink (LINK) has gone up 5.6% in the past 24 hours after the protocol announced that Jasmy, a large Japanese blockchain company, has adopted its Cross-Chain Interoperability Protocol (CCIP) to support Ethereum and base transfers of its native asset JASMY.

Trading volumes have exploded by 51% in the past 24 hours amid the news while LINK’s positive 24-hour performance is defying the general trend today as Ethereum (ETH) is posting mild gains of 0.1% while XRP is down 1.2% during the Asian session.

“Thanks to its principle-driven approach, Chainlink has built one of the largest ecosystems in the blockchain industry and is the blockchain connectivity standard within capital markets,” the Jasmy team commented in a Medium post published just hours ago.

Jasmy’s adoption of CCIP strengthens Chainlink’s credibility and could increase the demand for LINK as JasmyCoin, a cryptocurrency with a $670 million market cap and trading volumes exceeding $50 million per day, can now be safely transferred through these two strong blockchains.

Demand for LINK Could Rise as CCIP Becomes Widely Adopted

LINK is the native asset that powers this cross-chain solution. Companies like Jasmy turn to Chainlink to improve the interoperability of their blockchain-based applications and assets  CCIP facilitates asset transfers through dozens of blockchains including Ethereum, Base, Polygon, BNB Chain, Base, and Avalanche.

As the blockchain space grows, interoperability is key to ensure that decentralized applications can be easily scaled through multichain support.

Positive Momentum Picks Up in the Daily Chart

LINK’s daily chart shows that the asset has bounced above a key support at $12.70 and today’s uptick has contributed to improving momentum indicators as the asset distances itself from this level.

Its positive momentum accelerates and this recovery gains traction, the most relevant near-term resistance for LINK stands at $17.5. Both a key horizontal resistance and the token’s 200-day exponential moving average (EMA) stand at this price mark.

The Relative Strength Index (RSI) just sent a buy signal in the daily chart while the MACD’s histogram seems poised to move to positive territory. This sets the stage for a potentially bullish American session.

LINK Finds Support at $14 as Bulls Gain Control

Moving to the hourly session, we can see how the price action has already managed to break through the $14 level after a few retests and pullbacks.

Bulls have the upper hand when it comes to this trade as they can open a long position at $14 and set a stop loss around 2% to 3% below this level if they believe that positive momentum will accelerate during the American session.

This would result in a 1.7 risk-reward ratio if the exit price is set at around $14.6 based on the nearest resistance levels. As volatility has subsided, traders can now set narrower stop prices than last week in most cases.

Momentum indicators are favoring a short-term bullish outlook as the Relative Strength Index (RSI) has distanced itself significantly from the signal line. Although the oscillator has entered overbought levels already, this emphasizes the strength of the rally.

Meanwhile, the MACD’s histogram is also displaying steadily rising momentum readings. Although a couple of light green bars have popped up at the moment, a break above such a key level typically draws significant attention and interest from traders.