According to a well-known analyst, Chainlink (LINK), the biggest oracle network in the crypto industry, may be on the verge of a big breakout.
Analysts are bullish on Chainlink
In an X post, Michael van de Poppe, an analyst with over 700k followers on X, LINK could jump to $18 in the coming days. For this to happen, he believes that the token will need to flip the important resistance point at $13 into a support level. A move to $18 means that the coin will rise by 46% from the current level.
Poppe is not the only crypto analyst who is bullish on Chainlink. In another X post, Immortal, an analyst with 218k followers predicted that the coin would move from the current consolidation phase, and potentially rise to the highest level this year. That would imply an 86% increase from the current price.
One of the top catalysts for the LINK price is that the developers are considering launching the Chainlink Payment Abstraction. This will be an important thing since the five-year fees generated by the network will be converted into LINK, leading to singularity. In an X post, an analyst predicted that this change could push Chainlink’s price to $1,000.
Growing use case and rising competition
These statements come as the Chainlink network continues to have more use cases as the blockchain industry grows. Thanks to the CCIP, it has become a big player in the Real World Asset (RWA) tokenization industry.
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Its Cross-Chain Interoperability Protocol is important because it helps users build cross-chain ecosystems, allowing users to send tokenized assets across different chains like Optimism and Ethereum.
Chainlink is also benefiting from the ongoing inflows in the Decentralized Finance (DeFi) industry, whose assets have ballooned to over $90 billion.
The challenge, however, is that the oracle industry has become more competitive. Chainlink has a total value secured of $26.3 billion, while networks like Chronicle, WINKLink, Pyth, and Switchboard have gained market share.
Chainlink price has upbeat technicals
LINK chart by TradingView
The daily chart shows that the Chainlink price has strong technicals that could push the token much higher.
On the daily chart, we see that the LINK token has formed an ascending triangle chart pattern, a popular bullish sign. It has moved above the 61.8% Fibonacci Retracement level.
Also, the Chainlink price has moved above the 50-day moving average, while the MACD indicator has continued rising.
Therefore, more upside will be confirmed if the price moves above the key resistance level at $3. If this happens, the next point to watch will be at the 50% retracement level at $13.8. A jump above that level will point to more gains to the 23.6% point at $18.6.
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