Analysts Say Chainlink (LINK) May Prove the Crowd Wrong for a Fourth Time

Chainlink is getting traders interested again after a strong move higher this week, and some analysts believe the market may still be underestimating Chainlink’s upside potential. Crypto analyst Crypto Patel shared a simple observation that caught a lot of attention online. 

In 2020, many traders said Chainlink would never hit $50. It eventually climbed all the way to $52 during the last bull cycle. Years later, another popular argument appeared: institutions would never seriously buy into LINK. 

That narrative also weakened fast after more than $113 million reportedly flowed into US spot LINK ETFs within only a few months. Now the debate has moved toward one big question: can the LINK price eventually reach $100?

The LINK Price Has Already Left Its Old Accumulation Zone

We had a look at the LINK 3-week chart, and the long-term structure still looks very bullish overall. Crypto Patel identified a large accumulation range between $1.25 and $4.84 where buyers spent months accumulating LINK after the previous market collapse. 

Since then, the LINK price is trading far from that level at around $10.54. Notably, one key thing that traders need to watch out for is the reclaim of the $9.88 Fibonacci level. At present, LINK price is above the level as a signal that buyers continue to dominate the overall price trend.

The next key level of resistance can be found within the $13.50-$17.50 range, and traders may see it as the next breakout target as the bulls continue to gain more momentum across the altcoins.

As LINK clears the level, traders will have eyes set on other levels such as $22, $50, up to even $70-$100 as mentioned by some analysts.

DeFi Security Concerns Are Helping Chainlink

Part of the reason the LINK price has been outperforming Bitcoin comes from what’s happening inside decentralized finance.  After a major exploit tied to LayerZero infrastructure, some DeFi protocols started migrating toward Chainlink’s CCIP system because of security concerns. 

This led to renewed interest in the Chainlink network, helping boost sentiment for the token itself. For most, Chainlink remains one of the best infrastructure coins in the space, particularly when it comes to the oracle service and cross-chain interactions.

Also, activity within the altcoin sector has picked up generally. Capital is once again flowing back into the major altcoins, with LINK among those performing best in the process.

The LINK token price rallied over 2% in the last 24 hours, maintaining its position above the key support of $10.15. If buyers defend that area successfully, traders believe a move toward the $11 resistance zone could happen next.

Read Also: Crypto Price Prediction for Today, May 10: XRP, Uniswap (UNI), Sei (SEI)

LINK Still Has One Important Test Ahead

Another interesting point came from analyst Michaël van de Poppe, who focused on the LINK/BTC chart instead of the dollar chart. His argument is that LINK may already be recovering against the dollar, but it still needs to prove it can outperform Bitcoin before traders can call this a full altcoin breakout.

We had a look at the LINK/BTC structure, and the pair is finally showing the first signs of a possible reversal after years of weakness. A higher low has formed, which is usually one of the earliest signals traders watch for during trend reversals.

Still, LINK/BTC remains below a major resistance area near 0.00038-0.00042 BTC. That level is extremely important because a breakout there could completely change the long-term trend. Until that happens, the LINK price still looks bullish in dollar terms, but traders are waiting to see if Chainlink can finally start outperforming Bitcoin too.

FAQs

What is Chainlink CCIP

CCIP stands for Cross-Chain Interoperability Protocol. It allows blockchains and financial systems to securely transfer data and assets across different networks.

Why is the LINK price rising

The LINK price has been moving higher due to stronger altcoin market activity, growing interest in Chainlink’s CCIP technology, and renewed bullish sentiment from traders watching long-term breakout setups.