Chainlink hits yearly high: How did World Liberty Financial help LINK rally?

• Trump-backed World Liberty Financial bought LINK worth $1M.
• The bid triggered LINK to front a new yearly high of $29.

On the 12th of December, Chainlink [LINK] soared over 23% following news of World Liberty Financial (WLF) buying over $1 million in LINK.

The altcoin jumped from $23 to $29 but has since eased slightly to $27 at press time.

According to a blockchain analytics firm, SpotOnChain, the Donald Trump-backed DeFi protocol also bought Aave [AAVE] and Ethereum [ETH].

WLF wallets now hold over $64M, dominated mainly by DeFi tokens. 

Source: SpotOnChain

Community reactions

Reacting to the update, Chainlink community liaison Zach Rynes underscored the move as WLF’s confidence in LINK. He stated, 

“Trump’s DeFi project is buying up $LINK, accumulating $1M (41,335 LINK)… This follows from the recent announcement last month that World Liberty is adopting Chainlink starting with the integration of Price Feeds.” 

Another market analyst, Horse, claimed that whatever WLF bids might signal projects that could benefit from Trump’s policy plans. He noted, 

“Trump’s account is buying the crypto pairs that are set to benefit heavily from his plans.” 

During the same period, WLF bought $10 million in ETH and $1 million in AAVE. For those unfamiliar, WLF has integrated with Aave v2, a lending and borrowing DeFi protocol.

The market has been optimistic about Trump’s crypto plans, especially with recent pro-crypto picks. Whether the DeFi space will benefit most remains to be seen.

That said, what’s LINK’s price outlook in the short term? 

LINK cools off

LINK has been consolidating below its previous yearly high of $26. The WLF update pushed it to a new yearly high of $29. 

However, the rally attracted profit-taking as the altcoin slid towards $26. If $26 was retested as support, LINK’s further uptrend could be confirmed. If so, the next upside targets could be $30 and $35. 

But a breach below $26 could drag LINK to $23 or the trendline support. 

Source: LINK/USDT, TradingView