This Why Chainlink (LINK) Could Keep Rising in the Following Months: Analysts Chip in
TL;DR
- While the broader crypto market corrected, Chainlink (LINK) rose to nearly $19, marking a 6% daily increase.
- Analysts forecast further gains for the asset, supported by rising whale activity and key partnerships. Metrics show large transaction volume and a shift from exchanges to self-custody, indicating reduced selling pressure.
All Eyes on LINK
The cryptocurrency market experienced a correction in the past several hours, with numerous leading digital assets retracing substantially. Bitcoin (BTC), for one, dropped from $70,600 to $67,500 before settling at its current level of around $68K (per CoinGeckos data).
However, not all cryptocurrencies are in the red. One notable gainer is Chainlink (LINK), whose price neared the $19 mark following a 6% increase on a daily scale and a 35% rise over the last two weeks.
Multiple analysts noticed the tokens rally, and some envision further ascents in the foreseeable future. The X user FLASH presented a macro chart depicting LINKs different stages and their impact on the price. The trader outlined ten historical phases: hope, disbelief, optimism, thrill, euphoria, complacency, anxiety, denial, panic, and takeoff.
FLASH claimed that the accumulation phase occurs during the last two periods, suggesting we are currently at the hope point. They envisioned that the stages peak might come in the following days at a price of $24 (significantly higher than the cycles top from 2020).
The X user Zach Rynes chipped in, too, predicting that LINK will continue to be the winner of the tokenized RWA narrative. His forecast is based on Chainlinks key partnerships as of late and interaction at the deepest level with the global monetary system.
Recall that earlier this month, the Depository Trust and Clearing Corporation (DTCC) a leading American financial services company providing clearing, settlement, and information services shook hands with Chainlink and other market participants to introduce the Smart NAV pilot. The program aims to integrate blockchain technology into traditional finance.
What Are Metrics Signaling?
Some important indicators associated with Chainlinks ecosystem also suggest a further rally could be in the cards. According to IntoTheBlock data, aggregated LINK daily transaction volume (where each transaction exceeds $100,000) neared the $100 million mark, representing a 130% increase compared to the figure observed on May 27.
Such whale activity could be interpreted as a signal of confidence in the asset. As a result, retail investors may follow suit, triggering a fresh flow of capital and a subsequent price ascent.
Last but not least, we will touch upon Chainlinks exchange netflow, which has been predominantly negative in the past week. Shifting from centralized platforms to self-custody methods is considered bullish since it reduces the immediate selling pressure.
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Text source: CryptoPotato
