Chainlink’s native cryptocurrency, LINK has been one of the top performers in the crypto markets this year, surging over 15% in the last seven days alone. The decentralized Oracle network’s token is currently trading at $15.97, up 7.19% over the past 24 hours. Link records a market cap of over 9.2 billion and a volume of over $347 million as of writing.
Despite the recent rally, many analysts believe LINK is still in the midst of a prolonged accumulation phase before its next major uptrend cycle. They point to Chainlink’s market-leading fundamentals and growing adoption as key drivers that could fuel a substantial rally in the coming months.
A popular crypto analyst in a recent tweet said that Chainlink is approaching a new cycle low, presenting another massive opportunity to accumulate LINK and that It’s one of the top ‘blue chip’ cryptocurrencies at the moment.
#Chainlink is approaching a new cycle low, another massive opportunity to accumulate $LINK. pic.twitter.com/7ktFWBFOoU
— Michaël van de Poppe (@CryptoMichNL) April 14, 2024
The analytics noted that LINK holders have been steadily moving their tokens off of centralized exchanges and into self-custody wallets and DeFi protocols. This is seen as a bullish signal, reducing the risk of a sell-off from exchange outflows.
At a blockchain event in Dubai last week, Chainlink co-founder Sergey Nazarov discussed the project’s growth and upcoming milestones with Dr. Marwan Alzarouni, CEO of the Dubai Blockchain Center. Their conversation highlighted Chainlink’s continuing mission to build a robust data fabric for Web3 applications.
LINK Technical Analysis
On the weekly chart, LINK has been in an uptrend over the past two weeks after finding double support at the $12 level from a horizontal support and an ascending trendline. While down over 23% at its lowest point this month, LINK has now recovered to a 12.86% deficit over the last 30 days.
LINKUSD Weekly Price Chart (TradingView)
The daily chart shows five consecutive days of bullish price action following that $12 double support. Today, LINK opened at $15.11 and has set a new high after bouncing off a low of $15.00 low. The bulls aim to fill the fair value gap and retest the earlier broken-down ascending trendline near the $17 neckline of a previous head-and-shoulders pattern broken down 12th April. However, if bearish sentiment kicks in, sellers could drive LINK down to retest support at $11.90 zone if that $17 resistance zone holds.
LINKUSD Price Chart (TradingView)
On the 4-hour timeframe, LINK is currently trading inside the fair value gap on its way to the double resistance at $17. A rejection here could send the price back down to support at $11.90. However, a decisive breakout above $17 could kickstart a rally towards $20 to retest the right shoulder resistance of the prior head-and-shoulders pattern.
Looking ahead, some analysts have drawn parallels between the current LINK market structure and the 23-day period preceding its all-time high in January 2021. They speculate that if a similar 23-day uptrend plays out from LINK’s recent capitulation low, the token could be trading around its previous market cap high between $38-$41 by around May 8th, 2024.
🚨IT TOOK $LINK APPROXIMATELY 23 DAYS TO GET BACK TO ATH FROM DEC 23RD, 2020 TO JAN 15TH, 2021🚨
LIKE I’VE SAID IN PREVIOUS TWEETS, THE $LINK MARKET DYNAMICS ARE VERY SIMILAR TO THIS TIME PERIOD
IF WE APPLY THE SAME 23 DAY PERIOD TO OUR MOST RECENT CAPITULATION, $LINK COULD BE… https://t.co/lLNqt47MqK pic.twitter.com/KhxmV4vFlp
— LinkTOAD General HBARI (@ARiHBARi) April 21, 2024
Only time will tell if this lofty projection proves accurate. But given Chainlink’s solid fundamentals and the technical signals, a new LINK uptrend is cooking for the leading oracle solution.
