This is why Chainlink (LINK) could continue to rise in the coming months: analysts weigh in

TL;DR

While the broader crypto market corrected, Chainlink (LINK) rose to nearly $19, marking a 6% daily gain. Analysts forecast further gains for the asset, supported by increased whale activity and key partnerships. Metrics show high transaction volume and a shift from exchanges to self-custody, indicating reduced selling pressure. All eyes on LINK

The cryptocurrency market saw a correction in the last few hours, with numerous leading digital assets pulling back substantially. Bitcoin (BTC), for example, dropped from $70,600 to $67,500 before settling at its current level of around $68,000 (according to CoinGecko data).

However, not all cryptocurrencies are in the red. One of the notable gainers is Chainlink (LINK), whose price approached $19 after a 6% daily gain and a 35% increase over the past two weeks.

LINK Price, Source: CoinGecko

A number of analysts noticed the token’s recovery and some predict further rises in the foreseeable future. User X FLASH submitted a macro graph showing the different stages of LINK and their impact on price. The merchant described ten historical phases: hope, disbelief, optimism, excitement, euphoria, complacency, anxiety, denial, panic, and takeoff.

FLASH stated that the accumulation phase occurs during the last two periods, suggesting that we are currently at the point of hope. They imagined that the peak of the stage could come in the following days at a price of $24 (significantly higher than the high of the cycle from 2020).

X user Zach Rynes also chimed in, predicting that LINK will “continue to be the winner of the tokenized RWA narrative.” His prediction is based on Chainlink’s recent key partnerships and interaction at the “deepest level” with the global monetary system.

Recall that earlier this month, the Depository Trust and Clearing Corporation (DTCC), a leading US financial services company that provides clearing, settlement and information services, joined forces with Chainlink and other market participants to introduce the Smart NAV pilot. The program aims to integrate blockchain technology into traditional finance.

What are metric signaling?

Some important indicators associated with the Chainlink ecosystem also suggest that another rally could be on the cards. According to data from IntoTheBlock, LINK’s aggregated daily transaction volume (where each transaction exceeds $100,000) approached $100 million, representing a 130% increase compared to the figure seen on 27 of May

This whale activity could be interpreted as a signal of confidence in the asset. As a result, retail investors may follow suit, prompting a further inflow of capital and a subsequent rise in prices.

Last but not least, we’ll talk about Chainlink’s net exchange flow, which has been predominantly negative for the past week. The shift from centralized platforms to self-custody methods is considered bullish as it reduces immediate selling pressure.

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