TLDR
- Chainlink (LINK) has rebounded from $12.50 support and is trading around $13.50 after a 40% correction from yearly highs
- The SEC has released guidelines for smart contracts including Chainlink, providing regulatory clarity for institutional adoption
- Chainlink’s Cross-Chain Interoperability Protocol (CCIP) is gaining traction with new integrations including World Liberty’s USD1 stablecoin
- Derivatives trading volume jumped 40.49% to $1.18 billion with 68.32% of traders holding long positions
- Large-scale transactions ($1M-$10M) spiked 81.82% while mid-range transaction volumes declined
Chainlink has staged a comeback from its key support level of $12.50, currently trading around $13.50. The oracle token had fallen nearly 40% from its yearly high but appears to be finding stability within its parallel channel structure.
The recent price action comes after a technical correction that brought LINK down from higher levels. The token is now testing its ability to maintain momentum above the critical $12.50 support zone.
This support level has historically triggered upward movements for the token. The current rebound aligns with a long-term ascending pattern that dates back to mid-2023.
If Chainlink $LINK holds above $12.50, a surge in buying pressure could propel it toward $18! pic.twitter.com/Vi5EzgFUBn
— Ali (@ali_charts) July 9, 2025
Market participants are watching to see if the token can sustain its recovery. The price structure suggests that maintaining current levels could set the stage for further gains.
SEC Guidelines Provide Regulatory Clarity
The Securities and Exchange Commission has released official guidelines for smart contracts, including those powered by Chainlink technology. These guidelines outline how such contracts can legally integrate with traditional finance systems.
The regulatory clarity represents a major development for institutional adoption. It provides a framework for major capital inflows and increases confidence in Chainlink’s infrastructure.
This development addresses long-standing concerns about regulatory uncertainty. The guidelines create a clearer path for institutional players to engage with blockchain technology.
The new framework specifically covers compliance tools and secure auditing systems. These elements are crucial for financial institutions looking to adopt blockchain solutions.
Derivatives Markets Show Strong Interest
Trading activity in derivatives markets has increased substantially. Volume jumped 40.49% to $1.18 billion, while Open Interest climbed 11.60% to $738.51 million.
Binance data reveals that 68.32% of traders are holding long positions. This pushes the Long/Short Ratio to 2.16, indicating bullish sentiment among leveraged participants.
The Spot Taker CVD over the past 90 days shows continued buy-side dominance. This trend suggests aggressive buyers are stepping in during consolidation periods.
However, on-chain transaction data presents a mixed picture. While large transactions ($1M-$10M) spiked 81.82%, mid-range volumes declined.
Transactions in the $1K-$10K range dropped 13.09%. The $10K-$100K bracket saw a 23.64% decrease.
This disparity highlights cautious behavior among mid-tier investors. Even as select whales reengage, broader market participation remains limited.
Active addresses increased by 6.42%, reflecting growing network engagement. New addresses declined by 2%, while zero-balance addresses surged 11.68%.
The infrastructure upgrades include enhanced compliance tools and secure auditing systems. These improvements target the growing demand for secure blockchain solutions in finance.
Chainlink’s Cross-Chain Interoperability Protocol continues expanding. World Liberty’s USD1 stablecoin is now interoperable across multiple blockchains via CCIP.
The integration initially covers Ethereum and BNB Chain. It aims to address security issues with cross-chain bridges and extend stablecoin utility.
A successful institutional test involved Chainlink, Kinexys, and Ondo Finance. The cross-chain Delivery versus Payment transaction demonstrated secure coordination across different blockchain types.
European fintech Spiko is integrating Chainlink CCIP to access over $380 million in regulated on-chain funds. This adoption showcases the practical applications of Chainlink’s technology.
Large holders are accumulating based on on-chain data analysis. Technical signals suggest potential for a bullish breakout if positive momentum continues.
The token faces resistance at the $18 level within its parallel channel structure. Current derivatives activity and spot market strength could support a move toward this target.
