Chainlink could be gearing up for another strong rally after climbing 44% over the past week, according to traders.
“LINK looks ready for round two,” crypto trader Johnny, who boasts over 860,000 followers on X, posted on Wednesday, highlighting a bullish setup following the token’s rise to $24.60 this week.
Trader calls it the “most obvious large-cap play”
Santiment noted this is the “highest level of bullishness” for Chainlink since Feb. 1, more than six months ago. Over the past 30 days, LINK has climbed 54%, trading at $24.00 at the time of writing, according to CoinMarketCap.
A further 6.2% rise to $25.50 could put roughly $61 million in short positions at risk of liquidation, according to CoinGlass data.
Despite the recent rally, Chainlink still trades 55% below its May 2021 all-time high of $52.88. It’s among several top 20 cryptocurrencies — including Stellar, Hedera, and Litecoin — that have yet to reclaim their 2021 peaks.
Analysts have noted that many traders may hold out for popular 2021 coins to revisit their all-time highs before selling at breakeven. Still, some see greater upside ahead. Crypto trader Miles Deutscher called LINK “the most obvious large-cap play for this cycle,” warning that “most people will miss it.”
Recent developments for Chainlink
Deutscher attributed his bullish outlook to Chainlink being a “winner from the institutionalisation of crypto and the explosive growth of stablecoins, tokenisation, and RWAs.”
Earlier this week, Chainlink announced a partnership with U.S.-based Fortune 500 company Intercontinental Exchange (ICE) to bring foreign exchange and precious metals data onchain.
On May 15, Chainlink co-founder Sergey Nazarov said asset tokenization would accelerate capital flows across traditional markets and boost capital velocity in asset classes such as treasuries, equities, private credit, commercial debt, and real estate.
Crypto commentator Rick Barber added in an X post that “all eyes and interest regarding $LINK is on the expectation of a deposit and update this week to the newly created Reserve.”
