Chainlink collects liquidity in recent flash crash, LINK targets $58 next

Chainlink suffered a drop of nearly 44% within 48 hours but is primed for recovery.
Analysts expect the decentralized oracle network to hit a new all-time high in the next four to six weeks.
Following the integration of layer-2 rollup solution Optimism, social volume of Chainlink has hit a peak.

Blue-chip projects in the decentralized finance ecosystem took the biggest hit in the marketwide crash on September 8. Chainlink has recovered since then, rallying toward a target of $58.

Analysts predict new all-time highs for decentralized blockchain oracle Chainlink

Chainlink is making a comeback after a 44% drop over the past wee. The altcoin has posted gains of nearly 4% today. A layer-2 rollup solution called Optimism announced its integration with Chainlink’s decentralized oracles on September 1.

whoa. Whoa. WHOA !!! @chainlink is up & live & ... absolutely fabulous! Near real-time price feeds + near instaneous confirmations + low gas fees = CryptoNirvana on OΞ. Come check it out. https://t.co/aWyiEi2lFW
— Optimism (@optimismPBC) September 1, 2021

Following the announcement, the social volume of the altcoin increased considerably, driving the price higher until the recent market correction.

Pseudonymous cryptocurrency trader and analyst @Pentosh1 is bullish on LINK, the native asset of the decentralized oracle network. @Pentosh1 expects LINK to hit an all-time high in the next four to six weeks.

The analyst is of the opinion that currently traders are sleeping on LINK.

I think people are sleeping on $LINK

Very little chatter yet massive things going on in front of peoples eyes

I won't be surprised if price is a lot higher in the next 4-6 weeks pic.twitter.com/T5TCm44jgm
— Pentoshi Wont DM You (@Pentosh1) September 5, 2021

@Pentosh1 considers that LINK had a great close and is likely to trigger the next range high. The analyst is of the opinion that a rotation of capital between Ethereum and Chainlink has already started, though traders have not taken note of it yet.

Update: $LINK had a great close that triggers the next range

Imo clear as day it our-paces $ETH from here and the rotation has already begun

Might not be clear now, but people like to pay more later

Also above MA's cleared a very tough resitance on the $BTC and USD pairs pic.twitter.com/MWDXyIiJbx
— Pentoshi Wont DM You (@Pentosh1) September 6, 2021

Chainlink’s massive growth can be attributed to an all-time-high of 76 integrations in the month of August. Further, the decentralized protocol announced the mainnet launch of “Cross-chain interoperability protocol (CCIP)” and “Keepers” that enable smart contracts to automate key functions.

The two new protocols have attracted more smart contract applications to integrate Chainlink. Analyst @Pentosh1 had predicted one to two weeks of chop ahead of a rally to the all-time high.

Michaël van de Poppe, a cryptocurrency analyst and the founder of crypto education platform Eight Global, expects to see a continuation of the ongoing LINK price rally.

I still believe we'll be seeing continuation on $LINK here. pic.twitter.com/milpBRAlRB
— Michaël van de Poppe (@CryptoMichNL) September 8, 2021

Share: Cryptos feed

Information on these pages contains forward-looking statements that involve risks and uncertainties. Markets and instruments profiled on this page are for informational purposes only and should not in any way come across as a recommendation to buy or sell in these assets. You should do your own thorough research before making any investment decisions. FXStreet does not in any way guarantee that this information is free from mistakes, errors, or material misstatements. It also does not guarantee that this information is of a timely nature. Investing in Open Markets involves a great deal of risk, including the loss of all or a portion of your investment, as well as emotional distress. All risks, losses and costs associated with investing, including total loss of principal, are your responsibility. The views and opinions expressed in this article are those of the authors and do not necessarily reflect the official policy or position of FXStreet nor its advertisers. The author will not be held responsible for information that is found at the end of links posted on this page.

If not otherwise explicitly mentioned in the body of the article, at the time of writing, the author has no position in any stock mentioned in this article and no business relationship with any company mentioned. The author has not received compensation for writing this article, other than from FXStreet.

FXStreet and the author do not provide personalized recommendations. The author makes no representations as to the accuracy, completeness, or suitability of this information. FXStreet and the author will not be liable for any errors, omissions or any losses, injuries or damages arising from this information and its display or use. Errors and omissions excepted.

The author and FXStreet are not registered investment advisors and nothing in this article is intended to be investment advice.