A focus on Chainlink price prediction makes a lot of sense since it is one of the most important projects in the blockchain and crypto market. It was one of the first projects to identify a great market niche in blockchain oracle services.
Chainlink plays a vital role as a pioneer in decentralized oracle services. It makes it possible for blockchain data to be indexed and easily, as well as securely and efficiently accessible by smart contracts on different blockchains. This immense importance means it is a protocol that is essential to the blockchain industry and investors. As such, a Chainlink price prediction could be vital for investors interested in this protocol’s potential.
Historical Performance is essential for Chainlink price prediction
Most blockchains have only been around for less than a decade. This applies to Chainlink whose mainnet was launched in 2019. Therefore, its native cryptocurrency LINK has limited price history. Nevertheless, we can still use that history to create a profile that will aid in Chainlink price prediction.
LINK did achieve an impressive rally in May 2021 during which it rallied as high as $48.84 according to Coinmarketcap. A 90% correction in the subsequent months saw the price dip to sub-$5 levels. It is worth noting that Chainlink has experienced a demand resurgence over the past few months.
LINK exchanged hands at $14.40 at press time but what’s even more interesting is its marketcap which is currently at $8.45 billion. Although the demand resurgence suggests that it still has a long way to go, it is important to consider key events or outcomes that may support its performance.
For starters, Chainlink’s important role means it will likely continue to experience demand especially during the bull market. However, we should also consider fundamental growth factors. For example, Chainlink recently finalized testing with major banks which could see its services being integrated into the banking system. An outcome that underscores its role in the transition of WEB2 industries to WEB3.
The banking industry could just be one of the many influential industries that could take advantage of Chainlink’s services. This organic demand underscores potential for LINK to achieve higher price targets.
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Chainlink price prediction using Technical Analysis
Now that we have considered the fundamental side of things, it is important to look at prediction from a technical analysis point of view. We can use tools like Fibonacci retracement tools to explore the short term Chainlink price prediction.
If we map the Fibonacci retracement indicator from its latest bottom to its recent top, we can extrapolate key zones to look out for. If the bearish momentum remains, then we could see a retest of support below the $13 price level within the next few days. However, the retracement observed in the last 2 weeks has so far pushed price to a potential bounce back zone at 0.78. If the price bounces, then LINK’s price could push as high as $16. In the coming days.
Strong recovery momentum could put LINK back above $20 towards the end of July. This is assuming that the market will enter recovery mode. Its RSI indicates room for potential upside. But what about the long-term outlook? Will LINK push past its all-time high (ATH)?
Long-term Chainlink price prediction
There are numerous factors that may influence LINK demand moving forward. The first being the overall state of the market. Most analysts believe that we are currently in the bull market and that it has not achieved its full potential yet. This is particularly the case for most of the top Altcoins including LINK which have pumped relatively slightly from their 12-month lows compared to their historic highs.
If indeed the bull cycle is still at its early stages, then altcoin season might be just around the corner. LINK ranked 15th on Coinmarketcap based on marketcap, meaning it is in a unique position to attract a lot of investment during a bull market. Perhaps enough to send it above $50. However, the rally to the ATH may require more investment than last time because of Chainlink’s emission schedule.
Chainlink currently has a total supply of 1 billion LINK. However, its current circulating supply is at 587 million LINK. If the protocol’s circulating supply will be higher by the next peak, it could limit LINK’s potential upside. Fortunately, almost exactly a year ago, Chainlink revealed details of its emissions schedule which may offer insights into how much LINK will be in circulating supply a year from now.
https://twitter.com/ChainLinkGod/status/1669788720118235137
According to the announcement, Chainlink will release roughly 7% of LINK’s total supply into the market every year. This is roughly 70 million tokens each year. This means that Chainlink will have a circulating supply of around 657 million LINK around the same time next year. Assuming that it will have regained its ATH marketcap of $20.76 billion, then we can predict that its price will be at $31.
If Chainlink’s marketcap soars above $50 billion, LINK’s price will be at $76 and above. It will take a marktcap of over $66 billion for Chainlink to crack the $100 price level by June 2025.
Risk Factors and Disclaimers for Chainlink price prediction
While the above predictions are probable, keep in mind that this is not financial advice. If you’re looking for financial advice on the matter, consider consulting an independent professional. There is no guarantee that the price will reach those aforementioned levels. This is because there are numerous factors which may hinder such achievements. For example, there are numerous competitors that might undercut Chainlink’s marketcap especially if they can deliver more efficient oracle services.
Also keep in mind that past success is not necessarily indicative of future outcomes. Many crypto projects that made huge gains will likely underperform during the next rally especially due to competition from new and more interesting protocols. There is also a significant risk that the expected bull market may not favor altcoins as expected due to liquidity flows into Bitcoin courtesy of ETFs.
If you found this article interesting, also check out the Top 5 30X Altcoins you to consider for the 2024/2025 bull run
