Chainlink’s breakout follows months of trading in a narrow range between $12 and $17. With Chainlink’s solid fundamentals and the perception that it is undervalued, the breakout was inevitable.
The Chainlink crypto price has shot up by 17% in the last 24 hours. As of 10:11 AM GMT+3, Chainlink was trading at $18. Trading volumes have also shot up by 109% to $1.539 billion.
Among the key factors driving the growing investor interest in Chainlink is the growth in tokenized real-world assets. Chainlink has already built a reputation as the best and most dominant data oracle network in the DeFi space.
$LINK is breaking out 🔥
— Mystery of Crypto (@Mysteryofcrypt) February 2, 2024
This lead has given it an advantage as the cryptocurrency for investors seeking to tokenize real-world assets. With the market for Real World Tokenized Assets projected to grow exponentially into the trillion-dollar range, Chainlink has the potential to keep rising in value. It could be among the cryptos that outperform the market in the next bull cycle.
Chainlink is also benefiting from an increased interest in the Ethereum ecosystem. For the better part of January, much investor interest has been in the Solana ecosystem, with Solana-based meme coins coming up daily.
However, with news of an Ethereum upgrade and an overall increase in network activity on the Ethereum network, analysts expect tokens within the Ethereum ecosystem to do well in February. Chainlink, one of the most dominant Ethereum-based tokens, naturally stands out as one of the cryptocurrencies that could do better than most.
The rising excitement around the Ethereum ecosystem, coupled with Chainlink’s long accumulation period, is the key driver of the current LINK price pump.
Chainlink Breakout From A Multi-Month Range Is Bullish Signal
Since November 11th, 2023, Chainlink has been trading in a narrow range between $12.16 and $17.66.
Today, Chainlink has broken out of this range, which has already been confirmed in the 4-hour chart below.
From this chart, it is clear that not only has Chainlink closed above the multi-month range that it has been trading at for months, but bullish momentum is also accelerating.
Chainlink Price Prediction: Bulls In Control
The fact that Chainlink has broken through the $17.66 resistance indicates that bulls are firmly in control. As long as buying volumes continue to rise, Chainlink could keep rising until it hits its next resistance at $28.02.
Pushing through this price level could see Chainlink rally through $30 and retest its all-time highs. Even more bullish is the fact that Chainlink’s bullish breakout couldn’t have come at a more opportune time.
There is a lot of talk of real-world asset tokenization now that there is regulatory clarity on crypto in most parts of the world. Since this requires decentralized data oracles, and Chainlink is dominant in this space, adoption could trigger unprecedented demand for LINK tokens.
Then there is the coming Bitcoin halving, which is now less than 75 days away. The Bitcoin halving has historically brought crypto market pumps to new all-time highs.
Now that the Chainlink pump has started, it means by the time the Bitcoin halving happens, Chainlink could be drawing lots of investor attention. FOMO buying could see LINK make new highs in the process.
#Chainlink storm approaches 🌨️
Reasons to strap in 🏂
– Price above T, K, and cloud 🧙♂️
– Chikou in clear blue sky 🤖
– $LINK above 50/200 Day 🤘
– 50/200 Day sloping ⬆️
– Volume 📊
– T + K angling ⬆️
– Range breakout 🚀
– Green cloud lifting ☁️
– Uptrend fully intact ✌️ pic.twitter.com/QTeWN2zxYt
— Oracle of Link (@ChartsLink) February 2, 2024
Some analysts believe if LINK continues on its current trajectory and the Bitcoin halving brings in its historical FOMO, Chainlink could trade at prices above the $100 mark.
Broader Market Resilience Minimizes Risks
Chainlink (LINK), like all other cryptocurrencies, can be volatile. However, the market is sending the right signals at the moment.
A few days ago, the Federal Reserve ruled out any chances of reducing interest rates in March 2024. While such news often dampens the mood in the financial markets, the crypto market has shrugged it off.
Bitcoin, a key determinant of market direction, dipped a little on the news but is now back above $43,000. This is a sign of underlying strength in the cryptocurrency market.
It adds to the increased bullish potential and low-risk profile for cryptocurrencies like Chainlink.
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