LINK, accumulation zone between $5 and $9While the Clarity Act is in its final phase of drafting and validation for the United States Senate, altcoins that are critical within the interoperability and decentralized finance (DeFi) segment are those that will benefit the most from the adoption of the Clarity Act as a law in the United States.
The CLARITY Act aims to create a clear legal framework for crypto-assets in the USA:
• Separation between the SEC and the CFTC (securities vs commodities)
• Legal status of tokens
• Rules for exchanges
• Framework for DeFi and stablecoins
Among the cryptocurrencies that will benefit the most due to their critical role and their current institutional adoption, there is the crypto LINK. The latter has the strongest fundamentals in interoperability related to DeFi, and the token is currently located in a long-term technical accumulation zone between $5 and $9.
Beyond this technical perspective, Chainlink’s positioning is based on a structural role in the architecture of tokenized financial markets. Indeed, in an environment where equities, bonds, and other real-world assets are expected to be issued and traded on-chain, the central question becomes that of data reliability. Chainlink responds precisely to this need by providing decentralized oracles capable of delivering reliable external data to smart contracts.
This role is all the more strategic within a regulated framework such as the one implied by the CLARITY Act. Financial institutions, subject to strict requirements in terms of compliance and risk management, cannot operate without auditable and secure data flows. In this context, Chainlink establishes itself as a critical infrastructure enabling the connection between traditional systems and public blockchains.
Furthermore, the rise of tokenized products (on-chain ETFs, tokenized bonds, decentralized money markets) mechanically strengthens the demand for robust oracle solutions. Each tokenized asset requires price updates, rate references, or reliable external events, all use cases directly addressed by Chainlink.
Thus, the combination of a major regulatory catalyst and a key infrastructure positioning could justify a re-rating of the token over the medium term. From this perspective, the zone between $5 and $9 appears as a strategic accumulation phase that already worked perfectly at the end of the previous bear market in 2022.
The chart below shows Japanese candlesticks on weekly data for the LINK/USD crypto.
DISCLAIMER:
This content is intended for individuals who are familiar with financial markets and instruments and is for information purposes only. The presented idea (including market commentary, market data and observations) is not a work product of any research department of Swissquote or its affiliates. This material is intended to highlight market action and does not constitute investment, legal or tax advice. If you are a retail investor or lack experience in trading complex financial products, it is advisable to seek professional advice from licensed advisor before making any financial decisions.
This content is not intended to manipulate the market or encourage any specific financial behavior.
Swissquote makes no representation or warranty as to the quality, completeness, accuracy, comprehensiveness or non-infringement of such content. The views expressed are those of the consultant and are provided for educational purposes only. Any information provided relating to a product or market should not be construed as recommending an investment strategy or transaction. Past performance is not a guarantee of future results.
Swissquote and its employees and representatives shall in no event be held liable for any damages or losses arising directly or indirectly from decisions made on the basis of this content.
The use of any third-party brands or trademarks is for information only and does not imply endorsement by Swissquote, or that the trademark owner has authorised Swissquote to promote its products or services.
Swissquote is the marketing brand for the activities of Swissquote Bank Ltd (Switzerland) regulated by FINMA, Swissquote Capital Markets Limited regulated by CySEC (Cyprus), Swissquote Bank Europe SA (Luxembourg) regulated by the CSSF, Swissquote Ltd (UK) regulated by the FCA, Swissquote Financial Services (Malta) Ltd regulated by the Malta Financial Services Authority, Swissquote MEA Ltd. (UAE) regulated by the Dubai Financial Services Authority, Swissquote Pte Ltd (Singapore) regulated by the Monetary Authority of Singapore, Swissquote Asia Limited (Hong Kong) licensed by the Hong Kong Securities and Futures Commission (SFC) and Swissquote South Africa (Pty) Ltd supervised by the FSCA.
Products and services of Swissquote are only intended for those permitted to receive them under local law.
All investments carry a degree of risk. The risk of loss in trading or holding financial instruments can be substantial. The value of financial instruments, including but not limited to stocks, bonds, cryptocurrencies, and other assets, can fluctuate both upwards and downwards. There is a significant risk of financial loss when buying, selling, holding, staking, or investing in these instruments. SQBE makes no recommendations regarding any specific investment, transaction, or the use of any particular investment strategy.
CFDs are complex instruments and come with a high risk of losing money rapidly due to leverage. The vast majority of retail client accounts suffer capital losses when trading in CFDs. You should consider whether you understand how CFDs work and whether you can afford to take the high risk of losing your money.
Digital Assets are unregulated in most countries and consumer protection rules may not apply. As highly volatile speculative investments, Digital Assets are not suitable for investors without a high-risk tolerance. Make sure you understand each Digital Asset before you trade.
Cryptocurrencies are not considered legal tender in some jurisdictions and are subject to regulatory uncertainties.
The use of Internet-based systems can involve high risks, including, but not limited to, fraud, cyber-attacks, network and communication failures, as well as identity theft and phishing attacks related to crypto-assets.
