Investors anticipate there will be a further gain in Chainlink pricing as it has been one of the best-performing assets over the last few days. As a result, the futures market has seen a sharp change in sentiment, making LINK a valuable asset moving forward.
Chainlink’s price can skyrocket
With the price of Chainlink currently at $11.32, it has increased by about 54% in less than two weeks. In addition to reviving market interest in LINK, this rise has enabled the token to overcome a significant obstacle that had kept it stuck for more than 17 months. LINK has been trying to turn $8.76 into a support zone since May 2022, but after such a protracted consolidation, a rise was overdue.
This is the view that investors have been expressing; some have even suggested that there is still possibility for a further 77% increase in the price of Chainlink. LINK would reach $20 during this rise, but there are a number of conditions that must be met in a bull market for this to happen.
However, the desire to see Chainlink’s price reach this milestone will boost demand and raise the altcoin’s value above the $12.70 barrier level.
But in the unlikely event that the broader market cues fall short of the hype, LINK might lose its $10.95 support and drop down to $8.76. The 200-day Exponential Moving Average (EMA), which is situated just below this previous 17-month barrier, would totally undermine the bullish thesis over an extended period of time.
Chainlink is surprisingly in demand
The evidence on hand is what makes a bullish view appear more likely. The quantity of money invested in an asset in the futures market is one of the greatest indicators of its demand. The Futures Open Interest (OI) for LINK just increased to $308 million.
Given that this is a 104% rise from the prior average of $151 million, traders may be keeping an eye on LINK. Based on recent occurrences, there is a greater likelihood that long contracts will exceed short contracts, even though it is unclear whether the increased OI reflects long or short contracts.
In addition, Chainlink is among the blockchain startups in the cryptocurrency market with the highest level of funding. In addition to the token, which has a $6.3 billion market capitalization, Chainlink has the fifth-largest Treasury value, which is more than $800 million.
Additionally, the protocol’s income has increased as a result of the expanded use cases for Oracles. In the last month, the chain’s total fees collected exceeded $180,000, but its overall revenue exceeded $110 million.
This shows the asset’s market potential, which might be sufficient to raise Chainlink’s price to $20 in a bull market.