Chainlink Eyes Breakout as Tokenization Wave Builds

Chainlink nears a breakout from a four-year triangle pattern, with analysts eyeing a potential $100 target as tokenization momentum grows.

Sergey Nazarov sees tokenization of traditional assets as the catalyst that could expand crypto’s $4T market cap to tens of trillions.

With regulators easing under Trump’s administration, institutional adoption may fuel Chainlink’s growth and accelerate market-wide expansion.

Chainlink’s price chart now signals urgency for investors as analysts track a breakout pattern that could reshape its trajectory. Currently, Chainlink (LINK) trades at $21.89, down 4.55%, yet analysts believe this drop is only a prelude

Crypto strategist Ali has flagged a symmetrical triangle formation on LINK’s weekly chart, stretching back to 2022. He argued that a dip near $16 would be a “gift” because the setup points toward a potential $100 target.

The chart highlights four years of price compression between descending resistance from 2022 highs and ascending support near $5. Multiple rejections at the top trendline combined with consistent buy zones at the base created this triangle

Source: Ali

Moreover, Fibonacci retracement zones at 0.786, 0.618, 0.382, and 0.236 now serve as critical checkpoints for traders. With LINK positioned near the apex, investors anticipate a breakout that could unlock a sharp move.

A Multi-Year Setup Nearing Resolution

Triangle formations usually resolve with explosive momentum. Once trendlines converge, LINK now approaches that pivotal moment. Besides, volume has contracted during consolidation, reinforcing the setup’s reliability. Additionally, a dotted projection line on the chart points to $100 by 2026. Consequently, if LINK breaks resistance decisively, the upside could rival earlier peaks above $50 in 2022.

However, this technical story unfolds alongside a broader industry narrative. Chainlink co-founder Sergey Nazarov recently stressed the role of tokenization in reshaping finance. Speaking to Cointelegraph, he said, “If traditional financial assets were tokenized and brought onchain, that could boost market cap tenfold or more.”

The Tokenization Push Gains Momentum

The global crypto market now stands at $4 trillion, powered largely by retail investors. Nazarov argued that true scale demands institutional adoption. “How much more retail demand is there? Maybe $8 trillion, maybe $10 trillion, but not $50 trillion. To get to $50 trillion, you need TradFi,” he explained.

Furthermore, the Boston Consulting Group reported global assets under management reached $128 trillion in 2024, mostly held by large institutions. Regulators once discouraged institutions from touching crypto, but attitudes have shifted under US President Donald Trump’s administration. Nazarov added, “Now regulators are saying, ‘Not only is it not illegal, we want you to do it.’”

Chainlink’s breakout setup coincides with a regulatory green light for tokenization. If institutions embrace this shift, LINK’s potential expansion could accelerate.

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