Chainlink (LINK) price may be on the verge of a breakout to $20 as exchange outflows rise and ecosystem growth continues.

Chainlink (LINK), the largest provider of oracle services, was trading at $16 on Wednesday — up 60% from its lowest point this year.

Chainlink price may be nearing a breakout to $20 as exchange outflows continue and the ecosystem grows.

Chainlink (LINK), the largest provider of oracle services, was trading at $16 on Wednesday, up 60% from its lowest point this year.

CoinGlass data shows that investors have been accumulating the coin ahead of the rebound, with exchange balance netflow remaining negative every week since June last year. So far this week, $11.27 million worth of LINK has exited exchanges, following $55.2 million in outflows last week.

Chainlink price technical analysis: zoom inThe daily chart shows that LINK formed a double bottom at $10.20 in November last year and again in April, a bullish reversal pattern that usually signals strong upside momentum. LINK has also been contained within an ascending channel over the past three weeks and is currently supported by the 50-day weighted moving average.

The most likely scenario is a continuation towards the psychological resistance level at $20, a 27% gain from current levels. A drop below the lower boundary of the ascending channel would invalidate the bullish outlook.

Chainlink ecosystem expands with new partnerships and use casesRising exchange balances usually indicate selling pressure as investors deposit coins onto exchanges. Conversely, falling balances typically occur when investors move their tokens into self-custody wallets.

Chainlink’s technology is also seeing more use cases as the decentralized finance (DeFi) sector expands and the outlook for real-world asset tokenization improves. For example, Chainlink recently facilitated a transaction between JPMorgan and Ondo Finance (ONDO).

Chainlink’s cross-chain interoperability protocol went live on Solana (SOL) mainnet, unlocking over $18 billion in assets. CCIP also helped Solv Protocol, a Bitcoin staking platform, increase its assets to $2.5 billion, with $1.16 billion of them being powered by CCIP.

Analysts believe the RWA industry is still in its early stages and has plenty of room for growth, a trend that could benefit Chainlink. Asset manager VanEck estimates the market for tokenized securities has already reached $50 billion and may increase to over $30 trillion by 2030.

LINK price is also expected to benefit from Chainlink’s partnership with Swift, the global financial messaging network that processes trillions of dollars annually. The collaboration focuses on integrating blockchain infrastructure with traditional finance to enhance efficiency.