GENIUS Act could boost LINK usage, Chainlink CEO Sergey Nazarov says 

Chainlink (LINK) CEO Sergey Nazarov said that the recently approved stablecoin regulation, the so-called GENIUS Act in the US will kick off a wave of new stablecoins and LINK could benefit from it. LINK’s proof of reserves and cross-chain connectivity, Nazarov said on his official X profile, could be required for the stablecoins as a source of payment for the growing digital asset economy and tokenized funds.

Chainlink’s proof of reserves and cross-chain could help stablecoin growth 

The most awaited bill, GENIUS, was passed this week on Tuesday. The bill was passed by a 68-30 vote in the US Senate and headed to the House of Representatives before it can reach the President’s desk. This bill aims to regulate stablecoin issuers in the US and help to establish a legal framework, which could enhance their legitimacy and facilitate wider adoption.

“Stablecoin regulation in the US will kick off a wave of new stablecoins in the US and all over the world,” Nazarov said.

LINK’s proof of reserves and cross-chain connectivity could be required for the stablecoins as a source of payment for the growing digital asset economy and tokenized funds, he said.

Nazarov stated: “Chainlink is the only platform that provides proof of reserves and cross-chain connectivity in one system.”

The founder added that, as the complexity of blockchain transactions increases with the addition of more data, connectivity, compliance, and other requirements, LINK could be the platform to support these standards. Additionally, the Configuration Runtime Environment (CRE) technology, deployed last year, enables developers to establish faster connections to their apps across all chains connected to the Chainlink platform.

Chainlink technical outlook: LINK rebounds for key daily support level

Chainlink price faced rejection around its descending trendline (drawn by connecting multiple high levels since mid-December) on June 11 and declined by 16% until Tuesday. However, it rebounded after finding support around its daily level of $12.59. At the time of writing on Thursday, it continues to recover slightly, trading around $13.2.

If the daily level at $12.59 continues to hold as support, LINK could extend the recovery toward its 50-day Exponential Moving Average (EMA) at $14.37.

The Relative Strength Index (RSI) read 42, below its neutral level of 50, indicating bearish momentum. The RSI should move above its neutral level of 50 to support the recovery. 

LINK/USDT daily chart

If LINK closes below its daily support at $12.59, it could extend the decline toward its April 16 low of $11.89.