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Chainlink Price Prediction: LINK is On the Cusp of a 25% Jump

Chainlink Price Prediction: LINK is On the Cusp of a 25% Jump

Last updated 11th Aug 2022
Disclosure
  • Chainlink price has risen sharply in the past few days.
  • The rebound is in line with the strong performance of the DeFi industry.

Chainlink price rose to the highest level since June 11th as the decentralized finance (DeFi) industry bounced back. LINK surged to a high of $7.82, which is about 45% above the lowest level this year.

DeFi industry rebounds

Chainlink is a leading blockchain project that provides oracle solutions to developers in industries like decentralized finance, non-fungible tokens (NFT), and the metaverse.

Its primary product is an oracle solution that provides off-chain data to the on-chain industry. For example, it allows DeFi platforms like Aave, Compound, Frax, Synthetix, and dYdX to integrate real-time data from other platforms.

Chainlink also provides other solutions like VRF, Keepers, Proof of Reserve and cross-chain communication. VRF provides verifiable random number generators whike keepers provide decentralized, cost-efficient, and highly secure automation for smart contracts. Proof of reserves provides timely audits of on-chain and off-chain reserves.

Find out how to buy Chainlink.

Chainlink price has risen in the past few days as investors focus on the DeFi industry. After going through turmoil in the past few months, there are signs that the sector is bouncing back. For example, the total value locked in the sector has risen from the year-to-date low of $70 billion to over $90 billion. Some of the top performers in this rebound are Lido, Aave, and Compound.

Still, despite this rebound, Chainlink's activity rebound has struggled of late. The platform has a total value secured (TVS) of over $16 billion, which is lower than its all-time high of over $60 billion. This TVS is slightly higher than this week's low of $14 billion.

Chainlink's price rebound is mostly because of expectations that the DeFi industry will continue thriving in the near term. Besides, while many centralized platforms like Voyager Digital and Celsius have filed for bankruptcy, no major decentralized platform has gone out of business.

Chainlink price prediction

Turning to the four-hour chart, we see that the LINK price has bounced back in the past few days. And on Friday, it managed to move above the important resistance level at $7.5856, where it struggled to move above on July 20th and on June 21st.

At the same time, the Relative Strength Index (RSI) has moved above the overbought level of 75. The price has moved higher than the 25-day moving average.

Therefore, the coin will likely continue rising as bulls target the next key resistance at $9.65, which is about 25% above the current level.

Crispus Nyaga

Crispus Nyaga

Crispus is a financial analyst with over 9 years in the industry. He covers cryptocurrencies, forex, equities, and commodities for some of the leading brands. He is also a passionate trader who operates his family account. Crispus lives in Nairobi with his wife and son.