From the recent performance of $LINK and $UNI, it appears that altcoins, particularly the mainstream coins in the DeFi sector, are quite strong. Both have formed weekly double bottom structures, and the overall trend will likely continue upwards, while other altcoins are still oscillating.
Penny emphasized early this morning that it is now an institutional bull market, and large funds should be allocated to mainstream coins. Even if they rise slowly, as long as you hold them long-term, you will outperform 99% of the coins in the market.
The price of LINK has rebounded over the past few months, rising from a low of $10.05 in April to $26 on Sunday. This increase aligns with its strong fundamentals and technical outlook, indicating further rises in the coming weeks.
Penny expects that in a few months, the LINK price target will be $50, with the main factors as follows:
1. LINK ETF may be approved
The first major reason LINK's price could soar is the potential approval of the spot LINK ETF submitted by Tuttle Capital and Grayscale by the U.S. Securities and Exchange Commission (SEC).
Since January of this year, net inflows for all Bitcoin ETFs have exceeded $55 billion, while Ethereum funds have attracted over $12 billion in inflows. Even proxy cryptocurrencies like XRP and Solana's SSK have seen strong inflows in recent months.
Therefore, the LINK ETF is likely to succeed, as it serves as the largest oracle in the crypto industry and has solid fundamentals.
2. LINK has a strong technical outlook
Another major reason LINK's price is expected to break through $50 is its strong technical outlook. The daily chart below shows that this coin has formed several highly bullish patterns, which may lead to more upside in the future.
For example, the LINK price formed a highly bullish double bottom pattern at the lowest price of $10 in May and June. Currently, the LINK price has broken through the neck line of the May high of $17.9, confirming the breakout.
The LINK price has formed a golden cross pattern, which occurs when the 50-day and 200-day moving averages cross each other in a bullish manner.
By closely observing the charts, it can be seen that the LINK price has formed a highly bullish Elliott wave pattern. It has completed the first and second waves and is currently in the third phase. The third wave is one of the most bullish waves in technical analysis.
Therefore, the most likely scenario is that as bulls target the key resistance level of $30.85 (the highest level in 2024), the price of Chainlink continues to rise. A breakout above this level will confirm a bullish breakout and point towards further upside, potentially reaching the psychological level of $50.
3. ChatGPT chooses LINK as an “infrastructure bet” and accelerates reserves.
Recently, ChatGPT chose Chainlink as an “infrastructure bet,” and LINK has recently launched an innovative solution that will leverage its on-chain and off-chain revenue to accumulate LINK.
Data shows that the plan has purchased tokens worth over $2.4 million. Amid the continuous accumulation by whales, this single initiative is sufficient to impact the price of Chainlink.
4. The role in DeFi and RWA
Another bullish catalyst for LINK's price rise is its crucial role in decentralized finance (DeFi) and real-world asset tokenization.
LINK protects a network worth over $93 billion, a trend that will continue. At the same time, its Cross-Chain Interoperability Protocol (CCIP) holds a strong market share in the industry. Additionally, it has established partnerships with several giants in the cryptocurrency space. Therefore, this growth may drive LINK's price higher over time.
5. Multiple whales continue to accumulate
According to on-chain data analyst 'Ai Yi', just in the past 24 hours, four whale addresses accumulated a total of 580,995 LINK (approximately $13.86 million), bringing the total value to $31.83 million.
These whales have concentrated their entries at the same time, reflecting several key strategic intentions behind it:
Strong mid-to-long-term confidence: Such collective 'buy' actions usually reflect whales' clear judgment on the project's future, such as optimism about LINK's key infrastructure position in Web3 and potential cooperation and ecosystem expansion opportunities.
Capital chain layout strategy: Accumulation spread across four addresses not only avoids excessive concentration that may trigger market panic, but may also be to stage funds for liquidity needs or strategic maneuvers.
Impact on trading volume and liquidity: Large purchases reduce the market's available supply, helping to form price support, thereby driving short-term price increases or a recovery in sentiment.
This $13.86 million whale accumulation is by no means short-term speculation, but rather a result of confidence and strategic planning combined. If there are continued positive developments (such as on-chain collaborations, advancement of reserve plans, etc.), this accumulation may inject momentum for the start of a mid-to-long-term bull market.
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In a bull market, there are ups and downs; don't be afraid of small pullbacks as long as the trend remains unchanged. Remember not to covet other assets while overlooking the mainstream coins you hold, as you might find that holding onto mainstream coin spot is more rewarding.
