Chainlink (LINK), one of the most widely used decentralized oracle networks, has seen steady growth over the past year. However, after notching all-time highs last year, LINK has stagnated more recently around the $20 level, unable to break through key resistance.
But based on improving on-chain and technical metrics, analysts believe Chainlink is on the cusp of a major bullish breakout. The confluence of factors has put LINK in prime position to leave its lull behind and register major upside momentum once again.
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According to crypto analyst Michaël van de Poppe, LINK is closely tracking its performance against Bitcoin rather than the U.S. dollar. While LINK/USD has been muted and directionless lately, LINK/BTC appears to be bottoming out after an extended bear period.
The formation of distinct lower highs and higher lows on the LINK/BTC chart points to a definitive swing low taking place, usually a precursor to renewed optimism.
Can Chainlink hit new all-time highs?
And once Chainlink garners bullish momentum against Bitcoin, that sentiment should bleed into dollar-based gains as well. The analyst highlighted that because LINK/BTC looks to have bottomed out and is testing a key support, the chances of a breakout above $20 and onward to new highs improve considerably. Poppe mentioned that LINK is likely to hit an all-time high of $52.8 if the LINK/BTC pair reverses.
Also read: Chainlink Stagnates Near $20: Can LINK Hit $30?
Bolstering that notion is strong on-chain activity for Chainlink, as developer adoption continues to rise across decentralized finance (DeFi) and other web3 spaces. The unique real-world data bridging capabilities that Chainlink oracles enable remain in high demand, translating to surging network transaction volume over the past month.
So while the LINK price chart has some investors feeling impatient after an extended period of rangebound action, LINK may once again be on the launchpad, awaiting the countdown to liftoff.