The Chainlink (LINK) showed a bullish movement since mid-December due to the massive surge in decentralized finance (DeFi) and decentralized apps (dApps). This cryptocurrency provides building blockchain apps with oracles that connect smart contracts with price feeds and off-chain data. The presence of oracle is a blessing for this blockchain as it is helpful in NFTs, DeFi protocols, and other gaming apps.
LINK is the native token of this blockchain network where developers pay service fees with it. Therefore, the expansion in the use of the Chainlink network has a direct impact on the LINK price. In mid-December, Link formed a bottom after November’s rally but rebounded higher while other altcoins were in trouble.
The current circulating supply of this coin is 467,009,550 LINK, while the total supply is 1,000,000,000 LINK.
So, Is Chainlink (LINK) a good investment?
Let’s see the Chainlink (LINK) price prediction from Chainlink Forecast:
Chainlink and Oracle Dominate the DeFi Sector
Sergey Nazarov and Steve Ellis introduced Chainlink in 2017 that can provide oracle infrastructure in the DeFi sector to build scalable dApps using smart contracts on several Layer 2 networks.
According to the Chainlink blog, oracle’s presence is a sign that it can make a bridge between blockchain and off-chain blockchains like APIs, IoT, e-signs, and many more. Furthermore, in the Chainlink 2 whitepaper, the company wrote that the increase in expansion of the oracle network might provide fast and reliable connectivity in hybrid smart contracts. Therefore, the oracle network will evolve for exporting high-integrity blockchain grades in the ecosystem.
On the other hand, the presence of the Ethereum virtual machine (EVM) chain with Solana and Terra blockchain is developing cross-chain interoperability that can support multi-chain ecosystems.
At the end of 2021, more than 1000 projects run through the Chainlink ecosystem, where half of them were added during the past year. Moreover, the network surpassed $75 billion of total value secured, which is a considerable increase from 2020. Currently, Chainlink supports more than 700 oracle networks that provide market data, statistics, and many more.
Based on this development, it is clear that LINK has a higher possibility of showing a decent price movement in 2022, where the ultimate price target is set by ChainLink (LINK) Price Prediction today.
Chainlink (LINK) Bullish Possibility Is Solid
In the LINK/USDT daily chart, the price showed a corrective momentum from the mid of 2021, which shows that bulls still have opportunities to join the possible bullish rally. The price tested the all-time high of 52.93 in May 2021and crashed lower with a 71% loss. However, the lower price from the May crash was the lowest level till then. Therefore, until the price breaks below this low, we can expect a buying pressure in the price.
The above image shows how the MACD Histogram moved to the neutral zone while the dynamic 20 EMA approaches the price. In that case, any bullish rejection from the dynamic 20 EMA would be a buying opportunity in this pair. In that case, the primary target of the bullish entry would be the current all-time high of 52.93. On the other hand, a deeper correction may be found if the price moves below the 23.16 support level where another buying opportunity is available at the 15.00 area.
LINK/USDT Ichimoku Cloud Analysis
According to the Ichimoku cloud in the daily chart, the broader market context is showing a shift from bearish to bullish as the future cloud changes its direction. Senkou Span A is above Senkou Span B and aiming higher, which is the primary sign of the possible bullish pressure in the price. Moreover, the current price is within the Kumo cloud, where the break above the near-term swing high would be a buying opportunity in this pair.
In the daily chart, the RSI tested the overbought 70 level and aimed lower while the current price is above dynamic Tenkan Sen and Kijun Sen. In that case, investors should closely monitor how the price trades above the Kumo cloud where a bullish daily candle above the 28.70 would be a potential buying opportunity in this pair where the primary target is 52.91. Moreover, the ultimate target for 2022 would be the 80.00 level, which is the 161.8% Fibonacci extension level of May 2021 high to July low.
Is Chainlink (LINK) A Buy In 2022?
According to the LINK Price Prediction, the overall price direction is bullish in 2022 as the instrument faces several developments for using the Oracle database system that can create a revolution in blockchain technology. Therefore, any buying opportunity from the Ichimoku Kumo Cloud breakout may initiate the bullish opportunity in the coming days.