Chainlink collects liquidity in recent flash crash, LINK targets $58 next

  • Chainlink suffered a drop of nearly 44% within 48 hours but is primed for recovery.
  • Analysts expect the decentralized oracle network to hit a new all-time high in the next four to six weeks.
  • Following the integration of layer-2 rollup solution Optimism, social volume of Chainlink has hit a peak.

Blue-chip projects in the decentralized finance ecosystem took the biggest hit in the marketwide crash on September 8. Chainlink has recovered since then, rallying toward a target of $58. 

Analysts predict new all-time highs for decentralized blockchain oracle Chainlink

Chainlink is making a comeback after a 44% drop over the past wee. The altcoin has posted gains of nearly 4% today. A layer-2 rollup solution called Optimism announced its integration with Chainlink’s decentralized oracles on September 1. 

Following the announcement, the social volume of the altcoin increased considerably, driving the price higher until the recent market correction. 

Pseudonymous cryptocurrency trader and analyst @Pentosh1 is bullish on LINK, the native asset of the decentralized oracle network. @Pentosh1 expects LINK to hit an all-time high in the next four to six weeks. 

The analyst is of the opinion that currently traders are sleeping on LINK.

@Pentosh1 considers that LINK had a great close and is likely to trigger the next range high. The analyst is of the opinion that a rotation of capital between Ethereum and Chainlink has already started, though traders have not taken note of it yet. 

Chainlink’s massive growth can be attributed to an all-time-high of 76 integrations in the month of August. Further, the decentralized protocol announced the mainnet launch of “Cross-chain interoperability protocol (CCIP)” and “Keepers” that enable smart contracts to automate key functions. 

The two new protocols have attracted more smart contract applications to integrate Chainlink. Analyst @Pentosh1 had predicted one to two weeks of chop ahead of a rally to the all-time high.

Michaël van de Poppe, a cryptocurrency analyst and the founder of crypto education platform Eight Global, expects to see a continuation of the ongoing LINK price rally.