As a researcher with experience in the cryptocurrency market, I strongly believe that the altcoin season is upon us, and Chainlink (LINK) is one of the top contenders for significant price gains. The altcoin market has surpassed the $1 trillion mark in the past five weeks, and the demand for Bitcoin by institutional investors through ETFs has fueled this growth. With less than $700 billion separating the altcoin market from a new all-time high, I am optimistic about the potential price increase of LINK.
As an analyst, I’ve observed that the altcoin market has set a robust support base worth over $1 trillion within the last five weeks. The surging institutional demand for Bitcoin (BTC) driven by the Hong Kong and US-based spot BTC ETFs intensifies this market’s readiness for an explosive surge. Moreover, the altcoin market capitalization is only about $700 billion shy of hitting a new record high in the upcoming quarters.
According to a report by Coinspeaker, crypto investors have been actively purchasing cryptocurrencies over the past few weeks in anticipation of an altcoin season. Additionally, crypto venture capital firms managed to secure over $2 billion in investments during the last two months, coinciding with Bitcoin’s fourth halving event.
Chainlink (LINK) Price Eyes ATH
As an analyst, I’ve observed that Chainlink (LINK) has set a strong foundation for support at approximately $13 in the daily timeframe against the US dollar. With a fully diluted market capitalization of around $15 billion, this mid-cap altcoin has registered a notable surge of almost 9% over the past six days, causing its price to hover around $14.5 during early trading hours in New York on Monday.
After bouncing back from its 50-week moving average (MA) in the case of LINK‘s price, Michael van de Poppe, a well-known crypto analyst, asserts that this is an optimal moment to invest in the asset by going long. He bolstered his argument with the observation that the LINK/BTC pair has repeatedly tested a multi-year low.
#Chainlink does a retest at cycle low.
That’s not when you want to start selling your positions.
— Michaël van de Poppe (@CryptoMichNL) May 6, 2024
The price of LINK has been climbing significantly since its bullish breakout in October 2023. According to Elliott wave theory, we are currently in the initial phase of the third wave for LINK, which implies that it is likely to revisit its all-time high in the upcoming months if the bullish trend persists.
In the meantime, it’s wise to be patient and look out for a few positive signs for LINK‘s price. For instance, we should keep an eye on the resistance level around $17 for potential bullish cues in the upcoming weeks. Additionally, there’s a possibility that the LINK price may dip down to the support zone between $10 and $11 to gather more strength.
Top Reasons to Pay Close Attention to LINK This Bull Cycle
The cryptocurrency sector has advanced to the point of hosting well-established individual blockchains. In response, Chainlink’s team is dedicated to creating a reliable, secure, and expansive multi-chain system through its cross-chain interoperability protocol (CCIP). At present, Chainlink’s CCIP is compatible with leading blockchains such as Ethereum, Binance Smart Chain, Solana, Polygon, and Avalanche (AVAX), to name a few.
The Chainlink network offers dependable Oracle information to web3 and smart contract creators. Notably, Chainlink’s price feeds are utilized by leading web3 initiatives such as decentralized exchanges and lending platforms.
Impressively, Chainlink’s price feeds have enabled over $10 trillion worth of asset transactions since their launch.
In light of the growing popularity of Web3 technologies and digital currencies, it’s reasonable to expect that the price of LINK will experience significant growth in the near future.
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2024-05-06 19:22