Chainlink is a crypto innovation borne out of necessity.
Bitcoin, Ethereum, Tezos, and mostly all second-generation blockchains were isolated, individually moving billions of dollars daily.
Cumulatively, their transactional volumes were enough to make any investor envious.
Chainlink Market Performance and Price Status
The Chainlink project connects smart contracting platforms and their respective dApps to third-party, tamper-proof, trusted information.
Their solution can be described as a middleware for crypto. It is why dApps like Uniswap and all other protocols need external data to function.
Valuation-wise, Chainlink is one of the most sought-after projects. As of writing, the project commands a market cap of $11.8 billion, stabilizing on the last week of trading. Overall, buyers are firm despite the pressures of the last few days reading from candlestick arrangement in the daily chart.
At present, LINK/USDT prices are moving, edging lower with decreasing volumes inside a wedge.
While LINK bulls are hoping for a moon swing, technical traders are waiting for how prices react at the immediate support line at $23 and later $20.
The former is the first support line, while the latter marks September 2021 lows.
However, an upsurge above the primary resistance trend line and the bull flag would likely spark demand.
It would be especially the case if LINK prices clear $28—October 2021 highs—in a buy trend continuation pattern reflecting gains of early Q3 2021.
If that’s the case, LINK prices may expand to September 2021 highs of $25—the intermediate bullish target.
Chainlink Bullish Breakout to $35
On Trading View, a trader predicts Chainlink bulls to clear the immediate resistance level and $28 in a buy trend continuation based on candlestick arrangement in the daily chart.
Notably, the $28 level coincides with October 2021 highs. It presents a region of solid resistance given the several instances of price rejections.
From the daily chart, should this pan out, it would offer more comfort for risk-on traders waiting for an ideal bullish breakout before committing to longs.
For this to print out, LINK bulls must also clear $31—the intermediate resistance mark.
Afterward, LINK prices might glide to $35—which is H2 2021 highs.
LINK Is Fundamentally Undervalued At Spot Rates
There is a fundamental under-pricing of LINK at spot rates, one trader contends.
1/4 Chart: LINKUSDT 1D Binance
• $LINK under 25$ is literally heftily undervalued fundamentally while keeping the current market situation in mind
• And also technically here are the reasons why one should buy it now
— Harshavardhan Sinha (@harshvrdn_sinha) October 12, 2021
As such, the coin would quickly blast past immediate resistance levels to 2021 highs of around $55.
The analyst observes that LINK/USDT prices are within a cup-and-handle pattern.
Currently, there are encouraging bullish signs of a LINK breakout above the descending channel (the bull flag) of the handle. If history guides, the base for a swing higher is forming.
Per the analyst’s expectations, Chainlink bulls are likely to take charge, forcing the coin above $35—the main liquidation line—towards 2021 highs.
LINK/USDT Retesting Critical Support Trend Line
While Chainlink prices remain under pressure in the daily chart, one analyst on YouTube thinks every low presents a loading opportunity.
In his view, LINK bulls must trend above the primary support trend line of the bull flag for the uptrend to be valid.
Per his prediction, Chainlink bulls may expand to clear $28 and $35 in the path back to all-time highs.
Charts courtesy of Trading View
Disclaimer: Opinions expressed are not investment advice. Do your research.
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