Chainlink ($LINK), the leading smart contract oracle platform, has been trading sideways for the past few months, despite the bullish momentum in the crypto market. However, one prominent crypto analyst believes that Chainlink is poised for a major breakout soon, with a potential target of $200.
The analyst, who goes by the name of ChicoCrypto, shared his bullish outlook on Chainlink in a recent video. He explained that Chainlink has been forming a large symmetrical triangle pattern on the weekly chart, which indicates a period of consolidation before a strong trend reversal. He said that Chainlink is currently testing the upper resistance of the triangle, and if it breaks out, it could trigger a massive rally.
Chainlink’s network activity has been soaring in the past month, reaching new highs in several metrics. According to data from Santiment, Chainlink saw a 220% increase in active addresses, a 140% surge in unique interacting addresses, and a 47% jump in trading volume. These indicators suggest that Chainlink is gaining more users, adoption, and liquidity.
What is driving this growth? One possible factor is the increasing demand for Chainlink’s oracle services, which provide reliable and secure data feeds for various smart contracts and decentralized applications. Chainlink has been integrating with many projects across different blockchains, offering solutions for data provider, keepers, VRF, and price feeds. In July alone, Chainlink announced 14 new integrations, bringing its total number of partners to over 700.
Another possible factor is the positive sentiment and momentum in the crypto market, especially for Bitcoin and Ethereum. Chainlink’s price has been following the uptrend of these two leading cryptocurrencies, breaking above the $8.5 resistance level and reaching a monthly high of $16.6. Chainlink’s market cap has also increased by more than 100% in the last month, ranking it as the 12th largest cryptocurrency.
However, Chainlink still faces some challenges and risks ahead. The price is currently facing strong resistance at the $19 and $20 levels, which could trigger a correction if the bulls fail to sustain the rally. The RSI and MFI indicators also show that the price is overbought, indicating a possible reversal. Moreover, Chainlink’s social metrics have been declining, suggesting a lack of interest and engagement from the community.