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Chainlink And AAVE Surge After Trump’s Crypto Project Invests

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US President-elect Donald Trump’s company World Liberty Financial (WLF) has made a major multi-million dollar investment in Ethereum (ETH), Aave (AAVE), and Chainlink (LINK), leading to sharp increases in the prices of AAVE and LINK. According to on-chain analysis shared by Lookonchain via X and verified by Etherscan, the fund purchased approximately $10 million in ETH, $1 million in AAVE, and $1 million in LINK on December 11.

These are the fund’s first recorded acquisitions of both AAVE and LINK, while purchases in the last 12 days total around $30 million worth of USDC spent to secure over 8,000 ETH at an average price of $3,701.

Shortly after the news broke, the AAVE index rose approximately 31% over the past 24 hours, and the LINK index rose approximately 23.5%.

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This rise coincides with the recent decision by World Liberty Financial to integrate Chainlink technology. Last month, WLF announced that it would “leverage Chainlink as the standard for onchain data and cross-chain interoperability” to secure its protocol ecosystem.

The press release described Chainlink as “the most secure solution to solve critical security, interoperability and on-chain data issues” while noting that this would “launch the next wave of widespread DeFi adoption” of WLFI. The exchange plans to integrate Chainlink price feeds on the Ethereum mainnet in anticipation of the World Liberty Financial deployment of the Aave v3 instance, pending management approval.

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In October, WLF submitted a proposal to Aave Governance Forums seeking to deploy its Aave v3 environment. Aave founder Stani Kuleshov emphasized that the WLF instance is not a direct fork of the Aave code but acts as a separate instance linked to separate, KYC-compliant front-ends.

While this means that WLF leverages the largest public blockchain compatible with smart contracts and benefits from core DeFi fundamentals, it also maintains strict compliance requirements. The project is initially limited to accredited investors within the United States.

The AAVE, which has risen about 138% over the past five weeks, also shows technical resilience. Today’s price action pushed the pair above the 0.5 Fibonacci level at $356.84 (plotted from an all-time high to a session low). If this level holds on a weekly closing basis, upside targets could include the 0.618 Fib at $430.29, the 0.786 Fib at $534.87, and ultimately the ATH as of May 2021 of $668.

Chainlink’s performance over the past five weeks has been particularly strong, with gains of more than 175%. The most important technical resistance level now appears to be the 0.5 Fibonacci retracement level at $28.88. A decisive break above this level could open the way to the 0.618 Fib at $34.57, the 0.786 Fib at $42.67, and possibly the all-time high (ATH) as of May 2021 at $53.

At press time, LINK was trading at $27.67.

Chainlink faces resistance at 0.5 Fib, 1-Week Chart | source: LINKUSDT is TradingView.com

Featured image created with DALL.E, a chart from TradingView.com

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