A crypto trader says Chainlink may be “the most obvious large cap play for this cycle” that most people will miss.
Markets News
Chainlink may be setting up for another aggressive rally, according to traders, after recording a 44% gain in the past week.
“LINK looking like it’s ready for round 2,” crypto trader Johnny, who has over 860,000 followers on X, in a post on Wednesday, pointing to a bullish setup this week after hitting $24.60.
“Most obvious large-cap play,” says trader
Santiment it is the “highest level of bullishness” Chainlink () has seen since Feb. 1, over six months ago. Chainlink has also been up 54% over the past 30 days, trading at $24.00 at the time of publication, to CoinMarketCap data.
Another 6.2% increase to $25.50 would put about $61 million in short positions at risk of liquidation, to CoinGlass data.
Despite its recent rally, Chainlink remains 55% below its May 2021 all-time high of $52.88.
It is among several top 20 cryptocurrencies — such as Stellar (), Hedera (), and Litecoin () — that have yet to reclaim their 2021 all-time highs.
Analysts have said that many traders may be waiting for popular coins from 2021 to revisit all-time high levels before selling at breakeven.
Still, some analysts suggest it may go higher. Crypto trader Miles Deutscher , “LINK might be the most obvious large-cap play for this cycle,” adding that “most people will miss it.”
Developments for Chainlink in recent times
Deutscher said this is because Chainlink is the “winner from the institutionalisation of crypto and the explosive growth of stablecoins, tokenisation, and RWAs.”
On Monday, Chainlink partnered with the US-based Fortune 500 company Intercontinental Exchange (ICE) to bring data onchain.
Related:
Chainlink co-founder Sergey Nazarov said on May 15 that asset tokenization is set to across traditional markets and will boost capital velocity in asset classes such as treasuries, equities, private credit, commercial debt, and real estate.
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This article does not contain investment advice or recommendations. Every investment and trading move involves risk, and readers should conduct their own research when making a decision.
