Chainlink performed best among cryptocurrencies on September 6th. LINK was able to achieve an increase of 8.25 percent.
The LINK / USD pair hit $ 36.35 for the first time since May 20. It had previously bottomed at $ 13.45, recovering more than 170 percent overall. This has increased by 36 percent within a month.
Optimism Ethereum announced on September 1 that the project had integrated Chainlink’s market-leading decentralized oracle solutions into its Ethereum Layer Two services. As a result, LINK, which acts as a payment and staking token within the Chainlink ecosystem, rose 36 percent. Intermediate demand could continue to rise.
LINK was able to close 2020 with the same fundamental data with an increase of 45 percent.
With the booming decentralized finance (DeFi) industry and the fact that it is dependent on Chainlink, which provides live data feeds, the demand for LINK among users and speculators has skyrocketed. As a result, Chainlink’s market share in the DeFi area briefly climbed to 80 percent, as reported by ZDNet.
LINK was also able to achieve an increase of 161 percent in the first quarter of 2021, but recorded a disappointing decrease of 37 percent in the second quarter. These losses came as a result of a correction in the entire cryptocurrency market, which also hit Bitcoin (BTC) and Ether (ETH).
Yuriy Mazur, head of data analytics at the CEX.IO crypto exchange, said LINK could climb over $ 50 in the next three weeks. According to the analyst, the most important positive factor is Chainlink’s partnerships with over 76 new projects.
He told Cointelegraph:
“This relevance may have contributed to the fact that several LINKs are bought in order to be able to use the offers of Chainlink. That is why the spot traders want to ensure that the LINK / USD pair reaches its all-time high of 52 US dollars again.”
But Stephen Tuttle, financial analyst at Seeking Alpha, says the next big price target for LINK is $ 65.
Tuttle stated that traders have been very focused on ether because it is mostly used in the booming NFT space. He therefore expects a shift in capital after the peak of the ETH price rally, from which LINK should benefit greatly.
“If Chainlink can reach 0.02 Eth per LINK again, that would mean an exchange rate of around 65 US dollars. That would be an increase of over 2.6 times compared to the current exchange rate of 25 US dollars.”
At the time of going to press, the LINK / ETH pair was 0.009 ETH.
A widening wedge announces itself
The rally at LINK came in the wake of a general crypto boom, with Bitcoin climbing back to over $ 51,000 and Ether rising towards $ 4,000. Crypto traders have accumulated heavily as they expect the US Federal Reserve to postpone its tapering plans after two disappointing US labor market reports last week.
In this context: Chainlink (LINK) is building momentum: professional traders are aiming for 40 US dollars
As a result, LINK’s market orientation continues to correlate strongly with the top coins. There are also indications that the token is about to see a bearish reversal, as shown in the chart below.
The rising, widening wedge has two bullish trend lines that diverge. While the pattern is not a guarantee that there will be buyer exhaustion, it does indicate that every time price hits the upper trendline, sellers are trying to get the upper hand.
As such, the LINK / USD pair could still see a big drop towards the lower wedge trendline (around $ 28). But the bears would have to close below $ 37.96 for that. There is the 50 percent Fibonacci level, which results in a high of $ 52.32 and a low of $ 13.61.
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