Chainlink collects liquidity in recent flash crash, LINK targets $58 next
- Chainlink suffered a drop of nearly 44% within 48 hours but is primed for recovery.
- Analysts expect the decentralized oracle network to hit a new all-time high in the next four to six weeks.
- Following the integration of layer-2 rollup solution Optimism, social volume of Chainlink has hit a peak.
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Blue-chip projects in the decentralized finance ecosystem took the biggest hit in the marketwide crash on September 8. Chainlink has recovered since then, rallying toward a target of $58.
Analysts predict new all-time highs for decentralized blockchain oracle Chainlink
Chainlink is making a comeback after a 44% drop over the past wee. The altcoin has posted gains of nearly 4% today. A layer-2 rollup solution called Optimism announced its integration with Chainlink’s decentralized oracles on September 1.
whoa. Whoa. WHOA !!! @chainlink is up & live & ... absolutely fabulous! Near real-time price feeds + near instaneous confirmations + low gas fees = CryptoNirvana on OΞ. Come check it out. https://t.co/aWyiEi2lFW
— Optimism (@optimismPBC) September 1, 2021
Following the announcement, the social volume of the altcoin increased considerably, driving the price higher until the recent market correction.
Pseudonymous cryptocurrency trader and analyst @Pentosh1 is bullish on LINK, the native asset of the decentralized oracle network. @Pentosh1 expects LINK to hit an all-time high in the next four to six weeks.
The analyst is of the opinion that currently traders are sleeping on LINK.
I think people are sleeping on $LINK
— Pentoshi Wont DM You (@Pentosh1) September 5, 2021
Very little chatter yet massive things going on in front of peoples eyes
I won't be surprised if price is a lot higher in the next 4-6 weeks pic.twitter.com/T5TCm44jgm
@Pentosh1 considers that LINK had a great close and is likely to trigger the next range high. The analyst is of the opinion that a rotation of capital between Ethereum and Chainlink has already started, though traders have not taken note of it yet.
Update: $LINK had a great close that triggers the next range
— Pentoshi Wont DM You (@Pentosh1) September 6, 2021
Imo clear as day it our-paces $ETH from here and the rotation has already begun
Might not be clear now, but people like to pay more later
Also above MA's cleared a very tough resitance on the $BTC and USD pairs pic.twitter.com/MWDXyIiJbx
Chainlink’s massive growth can be attributed to an all-time-high of 76 integrations in the month of August. Further, the decentralized protocol announced the mainnet launch of “Cross-chain interoperability protocol (CCIP)” and “Keepers” that enable smart contracts to automate key functions.
The two new protocols have attracted more smart contract applications to integrate Chainlink. Analyst @Pentosh1 had predicted one to two weeks of chop ahead of a rally to the all-time high.
Michaël van de Poppe, a cryptocurrency analyst and the founder of crypto education platform Eight Global, expects to see a continuation of the ongoing LINK price rally.
I still believe we'll be seeing continuation on $LINK here. pic.twitter.com/milpBRAlRB
— Michaël van de Poppe (@CryptoMichNL) September 8, 2021
Author
Ekta Mourya
FXStreet
Ekta Mourya has extensive experience in fundamental and on-chain analysis, particularly focused on impact of macroeconomics and central bank policies on cryptocurrencies.
