Bullish predictions are rising for Chainlink, leading a strong move into the weekend

Among today’s top earners in the cryptocurrency world are Link (BUNDLE 3.30%)with Oracle Network up 1.7% over the past 24 hours and up 9.8% since Friday’s close as bullish bets surge on the top 15 cryptos by market cap.

Importantly, it’s worth noting that Chainlink’s strong move higher over the weekend came after a very pronounced move lower on Friday, as top crypto projects sold off amid growing recession concerns, which hit most assets hard. risk. Exits from crypto, tracked via data from spot exchange-traded funds (ETFs), as well as increased liquidations across many of the sector’s derivatives contracts, have driven sentiment lower in these riskier assets as that recession signals have increased.

However, a rally in most risk assets this past weekend was spearheaded by strong moves in the crypto market, suggesting investors in projects like Chainlink, which allows external off-chain price streams to be integrated into decentralized applications based on blockchain. will see continued power.

Let’s dive into what’s behind Chainlink’s latest move.

Bullish predictions rise on Chainlink as market sentiment shifts

As investor sentiment improves, it’s no surprise to see some prominent crypto analysts come out in favor of projects like Chainlink, offering upbeat predictions about where such tokens could be headed. Cryptojack is an analyst who has proposed a mid-term price target of $22 per token on Chainlink, which is a notable price target considering that this token is currently trading at less than $11 each at the time of writing .

In other words, this particular analyst sees over 100% upside from current levels, basing most of his analysis on technical factors (which I don’t fully subscribe to). However, the fundamentals this analyst points to, including the project’s market-to-realized value ratio (which recently turned positive after being negative for some time) and strong open interest in the stock, are factors that believe that are worth emphasizing.

Additionally, over the past three days, short liquidations have far outnumbered long liquidations, meaning that leveraged positions betting against Chainlink are being written off, adding to the price spiral for this token.

Where does Chainlink go from here?

In my view, the market dynamics for Chainlink and other infrastructure-based crypto projects appear to be much stronger today than they have been for the past week. With a recovery in venture assets flowing into the crypto space, large-cap projects like Chainlink will likely continue to be among the most liquid assets investors can trade and could remain among the top options for those who have a long-term view on this. section.

I’ll continue to watch how Chainlink does from here, but this weekend’s move is among the biggest I’ve seen of its peer group, so this is a sign of momentum, I think it’ll definitely be worth listing follow up for at least the next week or two.