Chainlink: Is It on Track for a Bull Rally?

If you have recently watched the crypto charts, you can see the growing popularity of many coins, including Chainlink (LINK). And while so many assets are on the bull run, there is the question of how long it’s going to last.

In this article, you’ll see the Chainlink price prediction for the short term - 2021 and 2022. But on top of that, check out what the distant future of LINK might be - 2025, 2030, and even 2050. To avoid fixating on the historical data alone, we’ll be looking at fundamentals and factors affecting the coin’s value.

What Is Chainlink (LINK)? 

ChainLink is a decentralized oracle network built on Ethereum. It connects off-chain data sources, such as APIs, data feeds, or bank payments, to on-chain smart contracts. For example, payment will be released only if a certain amount of Ether is deposited into a smart contract by a certain date. Otherwise, it will be returned to the sender. Since smart contracts exist on a blockchain, they are immutable (can’t be changed) and verifiable (seen by everyone). 

The Chainlink network was launched in 2017. The first version was launched in June, Chainlink’s white paper from Steve Ellis and Sergey Nazarov - in September.

In late March 2021, market capitalization is steadily moving towards 11.5 billion USD, based on a 350 million circulating token supply. The LINK token has many purposes, but the main one is compensating node operators and staking to incentivize good behavior.

How Does Chainlink Work?

The following process facilitates the communication between blockchain-based smart contracts it services and external data sources: 

1. Oracle Selection: A user defines several parameters that make up the service level agreement (SLA). After submitting the SLA and depositing LINK in an Order-Matching contract, oracles are selected based on the requirements. 
2. Data Reporting: The off-chain oracles connect with the external data sources to execute the agreement and report on-chain, utilizing the Chainlink service.
3. Result Aggregation: The oracles validate the data and reveal their results to the main contract and return it to what’s known as an aggregation contract. This contract also calculates the weighted answer and returns it to the user (smart contract).

What Can Drive Chainlink Price Higher? 

Before we delve into the Chainlink price prediction, we need to identify the factors that have the most profound effect on LINK's price. Aside from the obvious ones, like conditions on the crypto market, economic news, and government regulations, we have been able to identify the following ones.

Chainlink’s Oracle Services

Smart contracts are only as smart as the oracles that feed external information into them. If there is malicious code or bad data, the smart contract will produce an incorrect and unpredictable outcome. It is the single biggest problem of smart contracts that Chainlink solves.

The extended functionality of Chainlink’s oracle services establishes the project firmly in the blockchain space. Notably, it’s the ability to act as the bridge for interactions of several blockchains.

For this, Chainlink even received a shout-out from the tech giant Google. The announcement that they were integrating Chainlink’s middleware with BigQuery resulted in a giant price spike for Chainlink. Just a mention of usefulness and real-world application managed to affect the price so significantly.

Upcoming Chainlink Projects

The last year showed that Chainlink is serious about accelerating smart contracts’ adoption. It has been integrated into more than 300 projects, most of which are in DeFi and blockchain, followed by data providers and nodes. Moreover, Chainlink continues to appease more and more developers.

Every integration has further bolstered Chainlink’s market cap, and it’s probably going to continue. The more projects get added to the network, the more the corresponding grows in value, especially if the projects grow and scale. 

Here are a few examples of Chainlink’s recent big integrations:

• Bloom Credits’s verifiable credential data became accessible to DeFi applications through Chainlink oracles. This secured valuable identity data, such as credit history & accreditation, sourced from regular credit bureaus.
• Tezos and Chainlink agreed to let two Tezos’ teams access to Chainlink’s oracle network. This allowed Tezos’ devs to leverage the network’s power and securely access off-chain resources.
• Agoric, a decentralized platform for JavaScript development associated with Chainlink's technology, started integrating smart contracts. The collaboration allowed quicker and more effective product development without creating custom data feeds for DeFi dApps.
• There was an interesting partnership in the form of a hackathon with the State of Colorado to develop a lottery game with a $1 billion revenue goal. This was the first-ever game development hackathon.

Speculative Interest 

LINK’s price surges are often reliant on the ascent of DeFi and raising interest around it. If the market has taught us anything, it is the fact that a strong uptick in interest by institutional investors drives the price up. Crypto platforms that cater to the needs of institutional investors also play a role.

Generally, as with other cryptocurrencies, LINK’s value will remain volatile and fluctuate based on news, rumors, and online chatter by traders and miners. The anticipation of traditional, centralized finance slowly shifting to DeFi certainty sparks significant speculative interest around projects like Chainlink. 

How Chainlink (LINK) Price Developed in the Past 

The dynamics of Chainlink prices and its volatility can be assessed through the notable events in this project’s history:

• September 2017: The LINK ICO raised 114,285 ETH, or $32 million. The tokens were privately sold for $0.09 and sold publicly for $0.11. 
• June 2018: After the first all-time high price of $1.51, LINK corrected in a bearish run over the next 171 days, settling at $0.16.
• Early June 2019: Google announced Chainlink as its official Cloud Partner. Also, Chainlink unveiled the Trusted Compute Framework, for which they joined hands with Intel, Hyperledger, and the Enterprise Ethereum Alliance. As a result, the price jumped by more than 100%. 
• Late June 2019: Listing on the Coinbase and a surge to $4.3 (compared to $1 on June 1).
• March 2020: The start of the pandemic put LInk just below the $2 mark, which is a similar pattern to all cryptocurrencies at the time.
• August 2020: Chainlink was crushing it – $19.09 on August 16. LINK percent supply in smart contracts has reached an all-time high of 52.448%. However, this was followed by a several-month-long consolidation period.
• End of 2020: Chainlink saw a new integration of its decentralized oracle technology almost every day. The bullish sentiment continued. 

How Is Chainlink Doing in 2021? 

Here is the quickest recap of 2021: Chainlink started the year set at $11.55 (January 1) and climbed to $27.54 (March 16). This slow and steady ride will be reflected in the Chainlink price prediction down below.

There have been a lot of exciting announcements from the Chainlink team:

• Zero-collateral lending protocol Trust Token expands its integration.
• Konomi money market will use Chainlink oracles to secure its cross-chain loans.
• Sport Monks data provider will launch their own Chainlink node for supplying sports data.
• Ether cards will integrate Chainlink VRF as a core part of its #NFT gamification and monetization platform.
• Elastic finance aggregator will integrate Chainlink price feeds. 

This is just a small snippet of news surrounding the project. As it has been the last several months, with every new announcement, Chainlink becomes more and more established in modern-day finance. 

Short-Term LINK Price Prediction (2021-2022) 

For a better understanding of the price dynamics, we’ll cover 2021 and 2022 separately. 

2021

The Chainlink price prediction from Trading Beasts shows a skeptical attitude towards the asset. While it expects some improvement throughout the year (from -13% up to -4%), the total change percentage is overall negative. 

This forecast doesn’t represent the majority, but it’s important to analyze anyways. 

On an entirely different note, we have a table from Long Forecast. Although one thing is similar - the price is improving over the course of the year. But unlike Trading Beasts, the changes are all forecasted to be positive compared to the current price - the growth of up to 95% by the end of the year.

2022

Our first 2022 forecast comes from Digital Coin Price. If we consider that the Chainlink price will start off the year in the $42-$49 range (picking up from the forecast above), unfortunately, there isn’t much growth. But there might be fluctuations that short-term traders will be able to take advantage of. 

Long Forecast shares a rosier forecast. Once again, LINK may start the year at the $42-$49 price range. But what is different is that it might reach the 60, 70, and even 80 mark. There will be significant price changes and, for better or worse, no explosive growth. 

Chainlink Price Forecast for 2023-2025 

Let’s move to the longer-term Chainlink price prediction. The two tables below came from Digital Coin Price and paint a really positive future for the coin. Since the previous forecasts also ended up on an optimistic note, it’s only natural that the growth will continue to persist. 

Here are the approximate figures for 2023.

The 2025 prediction shows an upside movement that is backed up not only by historical algorithms but also fundamental factors. 

Chainlink Price Forecast for 2030

Below is the Chainlink price prediction for the 2025-2030 period. The forecast is prepared and published by Coin Price Forecast - just like the previous ones, the figures are based on historical data. 

Based on all forecasts above, it’s quite clear that Chainlink is here to stay. Its presence is very likely to be in the center of the blockchain revolution. The “Internet of value” is expected to gain massiv traction in the next five to seven years. In the meantime, LINK might experience ceaseless appreciation.

What Will Happen with Chainlink in 2050?

The Chainlink price prediction for 2050 is a thankless task. It’s unclear what the monetary structure will be reformed to. Not to mention, there is uncertainty in terms of what will be the exchange factor for the digital currencies. Other cryptocurrencies may be facing the extra risks of all their token supplies being mined. But this is not a problem for LINK as it’s an ERC-20 token with a total supply limit of 1 billion tokens. So, the token supply is not going to be as important as for BTC. 

The value of Chainlink so far into the future depends on how its related applications will mature. Market value will reflect the utility of the blockchain for the time as it always does. If the project keeps its relevance in the industry, it will surely be a hundred times more worth than now.

Since Chainlink is so different from Bitcoin in an application that it’s not a competitor to the BTC mania. But it always helps to keep track of BTC because if it goes upwards, the market tends to move accordingly. 

How to Conduct Chainlink Technical Analysis

First, we’ll give you the steps involved in technical analysis. And then, we’ll show you the current technicals for LINK and expert analysis to guide your trading. 

Below are the tools you need to conduct technical analysis on your own. 

• Trend lines: the current price direction to determine long-term and short-term trends.
• Support and resistance levels: the level at which there is a considerable amount of traders willing to buy the coin (support), the area where many sellers believe that the price cannot go above (resistance). 
• Technical indicators: pattern-based signals produced by the price, volume, and/or open interest, one of the most important tools of technical analysis. 
• Trading volume: A representation of the number of trades that have occurred within a given time period.

Right now, Link is looking to hold the support before coming up into the ascending channel. If the daily close gets above the current support, it might climb back up. But if it closes below, we might see a bit of a drop.

Calculations for trading:

• Resistance Level (R3): 36.86656
• Resistance Level (R2): 34.48683
• Resistance Level (R1): 31.779985
• Pivot Point: 27.67110
• Support Level (S1): 27.48565
• Support Level (S2): 24.24566
• Support Level (S3): 20.99972

Below are the ratings for the monthly chart and the summary for LINK/USD based on the most popular technical indicators.

Oscillators:

• Relative Strength Index (14) - 76.25090 - Neutral
• Stochastic%K (14, 3, 3) - 75.49451 - Neutral
• Commodity Channel Index (20) - 189.96479 - Sell
• Momentum (10) - 23.68983 - Buy
• Williams Percent Range (14) - 25.70143 - Neutral

Moving Averages: 

• Exponential Moving Average (10) - 16.57747 - Buy
• Simple Moving Average (10) - 14.97637 - Buy
• Exponential Moving Average (20) - 10.10703 - Buy
• Simple Moving Average (20) - 8.85182 - Buy
• Volume Weighted Moving Average (20) - 9.64562 - Buy

The trading volume is down 15% (Source: CoinMarketCap), so the coin is battling the retracement after a recent sharp spike in the price. But it looks like Chainlink is completing the same pattern that led to the last breakout. 

Experts about Chainlink’s Future Price

Every Chainlink price prediction from experts shows off a slightly different attitude toward the coin’s future. However, we can confidently say that most opinions are optimistic, and here are several examples. 

Is It Better to Trade or Invest in Chainlink?

On the one hand, Chainlink is a good long-term investment to keep in your wallet for years. This technology is blockchain agnostic and interoperable. In other words, the infrastructure is compatible with “all leading public and private blockchain environments''. As a result, the mainstream adoption (if not from individual users, then from new and existing products/services) will be followed by LINK appreciation in the future. 

However, many investors are fearful about putting their funds into an asset for a long time, Cryptomarket can lead to tremendous wealth and make you lose it all. A decline of an altcoin like LINK is even more heightened. But there is definitely speculative potential.

If you’re interested in trading LINK, there is a great option to maximize the results - CFDs. You get the chance to speculate on the price without owning the digital asset while also leveraging your positions. The best way to get into CFD trading is through a Libertex demo account. Why? You’ll get to know the trading platform and user-interface, learn cryptocurrency trading and technical analysis, understand market dynamics, and a lot more. Sign up today for free!

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FAQ

If you have some questions left, this section is for you. 

Should You Invest in Chainlink in 2021?

Almost any Chainlink price prediction will leave you hopeful for its future. If you invest in 2021, don’t expect to make a bank during the year. But if you wait a few years, the investment may potentially pay off. 

Can You Predict Chainlink Price?

Yes and no. On the one hand, you can gauge the fundamentals and hypothesize the success of future projects. Also, you can conduct technical analysis or seek a report from experts. On the other hand, it’s important to understand the shortcomings of any prediction and the inaccuracies it may involve. 

Will Chainlink Reach $100?

Judging from the Chainlink price prediction for 2025-2026 given above, the coin may reach the $100 mark in about five years. Of course, it will be possible as long as all the associated projects progress smoothly. 

Is Now a Good Time to Buy Chainlink?

If Chainlink manages to pull through resistance, the asset will be looking very bullish for the time being. If not, some traders claim that it should still be able to recover in the next couple of years. 

Does Chainlink Have a Future?

In theory, smart contract technologies combined with Chainlink can change the business at its core and rebuild our financial infrastructure from the ground up. This is a big statement, but the technology is moving ahead at a rapid speed from what it seems. 

Will Chainlink Keep Rising?

In the short term, we may see a bit of a drop. However, in a few years, the project is expected to climb back up and reach new heights as DeFi and oracle services grow. 

Is Chainlink a Good Investment?

Chainlink is one of the most prominent cryptocurrencies. A few reasons why it can be a good investment are the right technology behind it, enough resources for further development, and an excellent community.