- The Chainlink (LINK) share price has recovered after weeks of strong downtrend, while analysts are optimistic about future performance.
- LINKSWAP could be a price driver that creates an increased buying pressure.
Chainlink is showing bullish signs after a downward trend that extended over the past few weeks. At the time of publication, LINK’s price is at $9.91 with a gain of 10.3% in the last 24 hours. Despite that, on the weekly and monthly chart, LINK is still recording losses of 13.3% and 33.1%. However, Bitcoin’s recent price action and the launch of a product in Ethereum’s DeFi could support the bullish sentiment around LINK.
Trader Teddy has been bullish on LINK’s performance. Teddy published via Twitter the confirmation of a partnership between Chainlink and the hotel booking platform Travala. The integration with LINK will allow users of the platform to book up to 2.2 million hotels and houses worldwide. Hours later, LINK’s price showed an increase of almost 30% in 24 hours. As a result, Teddy has set the new support level at $7.9, as shown in the chart below. He has also set a new target of $12.96, if LINK can sustain the upward trend.
On the other hand, “Bitcoin Jack” believes that LINK is in an accumulation phase with a support level close to its current price between $8 and $9. As shown in the chart below, the analyst indicates that LINK could reach its all-time high again and reach $28 to $32. However, the trader also stated that LINK’s price “looks good for a reversal”.
Increased buying pressure for Chainlink (LINK)
Analyst Josh Rager has kept a close eye on LINK’s performance over the past few months. He stated in a recent analysis that investors should consider that LINK rebounds more strongly than other assets when Bitcoin shows a recovery. Accordingly, the trader is optimistic. As shown in the chart below, Rager expects LINK to drop to $8.6 before rising to $13. He also indicated that LINK must claim the $10 level to resume an sustainable uptrend. The anylst stated the following about LINK’s performance during 2020:
Chainlink needed this, the price went crazy. It went from $1 to $20. So, the (current) setback, along with the Bitcoin selloff, is nothing to be ashamed of. We’re still way up, at 1000%, compared to March. Chainlink is looking very good, I’m staying bullish on LINK .
Rager’s analysis has also focused on the impact that the launch of LINKSWAP will have on LINK. The protocol has been created, as reported by CNF, to allow LINK holders to provide liquidity on the YF LINK platform. The team behind LINKSWAP has made a recent update on the project. They indicated that cooperation with a “forthcoming project” will allow them to enable “exclusive liquidity in LINKSWAP”.
The cooperation will serve as an additional incentive for the community to use YFL and, consequently, LINK. Therefore, there could be an increase in buying pressure for LINK and a rise in its price at the time of LINKSWAP’s launch, as stated by Rager:
I’m accumulating at the literal support line (…). We are weeks away from LINKSWAP where YFL holders will make massive gains from staking – can’t wait.