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The price of LINK also increased as a result of a market-wide bullish surge in which Bitcoin and its top rivalling cryptocurrencies rose in lockstep.
On September 6, Chainlink emerged as one of the greatest cryptocurrency performers, with the price of its LINK token rising 8.25 percent against the US dollar.
The LINK/USD exchange rate reached $36.35 for the first time since May 20, months after bottoming out near $13.45 — thus recovering by more than 170% altogether. At the same time, its recent bout of buying saw prices bringing in about 36% month-to-date returns.
Optimism Ethereum announced on Sept. 1 that it had integrated Chainlink’s market-leading decentralized oracle solutions to its Ethereum layer-two services. As a result, the price of LINK, which serves as a payment and staking token within the Chainlink ecosystem, increased by 36% on the expectation of stronger interim demand from Chainlink users.
The same fundamentals helped LINK investors close 2020 with a 540 percent profit.
A thriving decentralised finance (DeFi) market, which relies on Chainlink to secure live data streams, has increased demand for LINK among users and speculators alike. As a result, Chainlink’s market share in DeFi reached 80% at one point, according to ZDNet.
LINK continued its ascent in the first quarter of 2021, jumping 161 percent, but followed the upswing with a poor second quarter, plummeting 37 percent. Its losses were caused by an overall correction trend in top cryptocurrency tokens such as Bitcoin (BTC) and Ether (ETH).
LINK, according to Yuriy Mazur, head of data analytics at crypto exchange CEX.IO, might rise above $50 in the next three weeks. The analyst mentioned Chainlink’s August partnership with over 76 new projects as one of the major bullish indicators for its native cryptocurrency.
“This relevance has perhaps boosted LINK accumulation to access the Chainlink offerings. As a result, spot traders appear ambitious to stir the price growth until LINK/USD retests the previous all-time high of $52.”
But for Stephen Tuttle, a financial analyst at Seeking Alpha, the next big upside target for Chainlink’s token sits near $65.
Tuttle noted that traders have allocated all their attention to Ether due to its principal involvement in the booming nonfungible token (NFT) space. As a result, he anticipated a capital reallocation after the ETH price rally tops out, which would be extremely beneficial to the LINK market.
“If Chainlink can once again reach 0.02 Eth per Link, at Ethereum’s current price, this would place the Link token at about $65, or a 2.6x increase from its current price of $25.”
At the time of writing, the LINK/ETH rate was 0.009 ETH.
Broadening wedge alert!
LINK’s latest price surge coincided with a wider crypto bubble, with Bitcoin regaining $51,000 and Ether approaching $4,000. Crypto traders increased their bids across the board, hoping that the Federal Reserve would postpone its tapering plans following two weak US job statistics last week.
As a result, the market bias of LINK stays significantly associated with top coins. Atop that, there are hints that the token is forming a bearish reversal indicator, as shown in the chart below.
The indicator, dubbed a “ascending expanding wedge,” displays two rising bullish trendlines that diverge from one another. The pattern does not indicate buyer tiredness, but rather sellers’ eagerness to seize control whenever the price touches the upper trendline.
As a result, LINK/USD remains vulnerable to a major drop towards the lower wedge trendline (around $28). Bears would still need to close below $37.96, the 50 percent Fibonacci retracement level established from the $52.32 swing high and $13.61 swing low on the Fibonacci retracement graph.