I think this project has a lot of potential to connect data from the real world into the blockchain and the team has been doing an amazing job fundamentally. Every day, you see integrations from different projects. Chainlink still has a lot of room to grow so I considered it undervalued to what it has to offer in the future.
As Bitcoin is falling and impacts the whole market, I wanted to share my perspective on what to expect from Chainlink on different types of movements:
Current price is situated at the exact average of the current logarithmic trend which currently oscillates between $10 to $70 (I know this is a big difference, but that's what you encounter in crypto ). I would not consider Chainlink in a bear market even if it QUICKLY falls to $10-$20 and spikes back to $30+ as it would be still on the lower zone of the All-Time trend.
Right now, we are in the margin of still being in a bullrun as it has not broken the $20 Support.
Bear Market Trend
To confirm a bear market, it needs more time. If Chainlink falls to correction or crash zone but does not spike back, we will have a change in the trend and I would consider $52 to $9/$7 or less an authentic bear run. Prices from historically fundamental coins have crashed around 85%-95% from a bullrun; this means a price of $3 to $5 for Link approximately which coincides with the $5 horizontal support; so don't be surprised if this happens. Another assumption is that this does not necessarily happen quickly; price can consolidate in the $20-$30 for a while and then crash to $10 or vice versa and stay there for months which would confirm a change of a trend.
Bull Market Trend
The sky is the limit. However, there are important historic indicators and trends to note:
- Link has not had an independent movement this overall market bullrun. It is directly impacted by Bitcoin price action and does not do well when the market crashes; so it really depends a lot right now of how the market behaves. If the bull run continues, there has been many valuations of BTC reaching between 100k to 200k which I agree with; this would put Chainlink between $100 to $200 as a top if price action remains with the same speed.
- If overall bull market continues, it has also historically finished at the end of the year; this would also put Chainlink between $100 to $200 in the trend.
- Chainlink has not had any hype pump. If good news such as the release of staking is announced at the right time with the right hype; I think Link is capable of breaking the resistance and reach parabolic prices from $200 to $1000.
Summary & Recommendations
I think Link is in a very neutral position right now and it's difficult to determine if the bull-run will continue or not as it is exactly in its all-time historic logarithmic trend and also because it depends of what Bitcoin does. Current support is $20. If bullrun continues; I would expect $100-$200 levels as a more likely scenario but with potential pump opportunities of $200-$1000. If we enter bear territory : I see a possible change in trend and price support from $5 to $15.
My suggestion is to HOLD this coin and accumulate( DCA ) if it falls below $20 as the project is fundamentally strong and I am very positive in reaching a much higher valuation in the future.