Chainlink (LINK) has more than doubled in value since the beginning of October 2023, rising from $7.78 to a high of $16.62.
The current price of LINK stands at $14.67, and for now, bulls continue to control the price movement. This positive trend is also supported by Bitcoin’s ascent beyond $38,000 and its ambitious aim to reach $40,000 in the upcoming days or even hours.
With such large returns, Chainlink has naturally outperformed most of the other top assets recently; however, investors should also keep in mind that investing in LINK at the current price involves a significant degree of unpredictability and substantial risk. So, where is the price of Chainlink (LINK) going next, and what can we expect from December 2023?
Today, Crypto Lists will discuss Chainlink (LINK) price estimates from a technical and fundamental analysis perspective. Please note that there are also many other factors to consider when entering a position, such as your time horizon, willingness to risk, and how much margin you have if trading with leverage.
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- 1 Chainlink has significantly increased its value
- 2 Crypto analysts expect the SEC to approve a Bitcoin ETF soon
- 3 Technical analysis for Chainlink (LINK)
- 4 Main support & resistance levels for Chainlink (LINK)
- 5 What speaks for the rise in the Chainlink (LINK) price
- 6 What indicates the downfall of Chainlink (LINK)
- 7 What do analysts and experts say?
Chainlink is a decentralized oracle network and cryptocurrency that aims to bridge the gap between blockchain smart contracts and real-world data, events, and APIs (Application Programming Interfaces). It is important to mention that smart contracts alone cannot access data outside of the blockchain, which is where Chainlink comes in. Chainlink provides a decentralized oracle network that connects smart contracts to real-world data sources, web APIs, and various other external resources.
Chainlink is built on a flexible framework that can retrieve data from any API, and every oracle within the Chainlink network is incentivized to provide accurate data since a reputation score is assigned to each. Within the Chainlink ecosystem, the LINK serves as a utility token, with node operators staking LINK as collateral to engage in the network. By supplying accurate data, node operators can earn rewards, whereas users utilize LINK as fees for accessing Chainlink’s oracle services.
Not long ago, LINK was trading below $6 ( September 11, 2023), but since then, the price of LINK has been advancing. In the last 35 days, the value of LINK has increased by more than 100%, rising as high as $16.62 on November 11. Positive information is that LINK emerged as one of the top gainers in terms of active addresses according to leading insights provider IntoTheBlock.
This shows that more players are jumping on the LINK network, which can be echoed by the fact that institutional interest has been going through the roof. IntoTheBlock also pointed out that LINK’s daily transactions surged by over 400%, indicating a significant increase in activity within the network. This positive trend is also supported by Bitcoin’s ascent beyond $38,000 and according to many crypto analysts, this trend should continue in December 2023.
Crypto analysts expect the SEC to approve a Bitcoin ETF soon
Another contributing factor to optimism on the cryptocurrency market is the fact that many crypto analysts expect the U.S. Securities and Exchange Commission (SEC) to approve a Bitcoin ETF very soon, and if this happens, the price of LINK will probably be at higher levels. As per insights shared by analysts at JPMorgan and Bloomberg Intelligence, there’s a strong likelihood of the SEC granting approval for a Bitcoin ETF by January 10, 2024. This anticipated approval is expected to energize the cryptocurrency markets, drawing considerable institutional investments, especially from hedge funds.
Another pivotal element that impacted the prices of numerous cryptocurrencies is the recent surge in market liquidations. As per Coinglass data, there has been a significant rise in liquidations of both long and short positions across different time frames and such liquidations often contribute to increased market volatility, influencing the price dynamics of many cryptocurrencies. Despite this, investors should keep in mind that while positive developments can trigger substantial price increases, they also carry potential risks.
Therefore, investing in cryptocurrencies should be approached with careful consideration. Conducting thorough research and assessing one’s risk tolerance are essential steps before making any investments in this space. In the weeks to come, LINK and the cryptocurrency market will remain significantly influenced by the decisions of the U.S. Securities and Exchange Commission (SEC), alongside concerns of a recession, the situation in the Middle East, and the direction of monetary policies of major central banks.
Chainlink (LINK) has advanced more than 100% since October 20, 2023, rising from $7.26 to a high of $16.62. The current price of Chainlink (LINK) stands at $14.67, and as long the price of LINK is above $13, we can’t talk about a trend reversal, and the price of this crypto remains in the BUY-ZONE.
On this chart (the period from April 2023), I marked important support and resistance levels that can help traders understand where the price could move. According to technical analysis, bulls control the price movement of Chainlink (LINK) for now, and if the price advances above $17, the next target could be $18 or even important resistance that stands at $20. The important support level is $13, and if the price breaks this level, it would be a “SELL” signal, and we have the open way to $12. If the price drops below $12, which also represents very strong support, the next target could be located around $10.
Chainlink (LINK) remains in the “bullish phase,” and it is important to say that the amount of LINK traded over the last several weeks saw an increase. According to the data firm Santiment, crypto whales with balances of 100,000 to 1 million LINK continue to be active and if the whales continue to buy, the increased market liquidity could propel LINK to even higher price levels. The price of Chainlink (LINK) is usually correlated with the price of Bitcoin, and if the price of Bitcoin jumps above the $40000 resistance level, that could have a positive influence on the price of LINK.
Investing in LINK involves a significant degree of unpredictability and substantial risk. While positive advancements have the potential to drive considerable price surges, they also come with associated risks. Furthermore, the broader macroeconomic environment remains uncertain, with major central banks actively combatting inflation through interest rate hikes, which could adversely impact risk-on assets like cryptocurrencies. It’s essential to note that LINK’s critical support level rests at $13, and a breach of this level could set the stage for a potential target of $12 or even $10.
What do analysts and experts say?
Since October 20, 2023, LINK has seen a substantial increase of over 100%, and one contributing factor to this positive trend is the notable surge in whale transactions within the cryptocurrency over the past few weeks. Positive information is that also LINK emerged as one of the top gainers in terms of active addresses in the same period which shows that more players are jumping on the LINK network. The question now is whether this “bullish” phase could potentially instigate further gains and maybe a jump beyond the $20 mark.
Many crypto analysts say that more investors could purchase LINK in the weeks ahead, and as long the price of LINK is above $13, the price of this crypto remains in the BUY-ZONE. Crypto analysts also say that the SEC approval for the first Bitcoin ETF in the U.S. would certainly positively influence the price of LINK, but investors should also keep in mind that regulatory concerns surrounding the cryptocurrency market can also have a spillover effect, dampening investor sentiment and lead to a broader market correction.
Disclaimer: Crypto is extremely volatile and not suitable for everyone to invest in. Never speculate with money that you cannot afford to lose. The information on this site is presented for educational purposes only and should not be construed as investment or financial advice.