Chainlink price has rebounded in the past few months, moving from a low of $10.05 in April to a low of $26 on Sunday. This surge coincided with its strong fundamentals and its technicals, pointing to more gains in the coming weeks.
This article looks at the top reasons why LINK price may hit $50 in the coming months.
Potential LINK ETF approval
The first main reason why the Chainlink price may surge is that there are odds that the Securities and Exchange Commission (SEC) will approve the filed spot LINK ETFs by Tuttle Capital and Grayscale.
A spot LINK ETF would be a good thing for the price as it would lead to more demand. Recent data shows that there is a demand for Bitcoin and altcoin ETFs as evidenced by their inflows.
All Bitcoin ETFs have had net inflows of over $55 billion since January this year, while Ethereum funds have brought in over $12 billion in inflows. Even proxy crypto ETFs like Ripple’s XXRP and Solana’s SSK have seen robust inflows in the past few months.
Therefore, a LINK ETF will likely be successful because of its solid fundamentals as the biggest oracle in the crypto industry.
Chainlink price has strong technicals
The other main reason why the Chainlink price is on a path to $50 is that it has strong technicals. The daily chart below shows that it has formed several highly bullish patterns that may ultimately lead to more gains over time.
For example, the LINK price formed the highly bullish double-bottom pattern at $10, its lowest level in May and June. It has surged above the necklne at $17,9, its highest point in May, confirming the breakout.
Chainlink price has formed a golden cross pattern, which happens when the 50-day and 200-day moving averages cross each other in a bullish manner.
A closer look at the chart shows that the LINK price has formed the highly bullish impulse Elliot Wave pattern. It has already completed the first and second waves and is now in the third phase. The third wave is one of the most bullish ones in technical analysis.
Therefore, the most likely scenario is where the Chainlink price continues rising as bulls target the key resistance at $30.85, its highest level in 2024. A move above that level will confirm the bullish breakout and point to more gains, potentially to the psychological point at $50.
On the other hand, a drop below the support at $20 will invalidate the bullish Chainlink price forecast.
LINK reserves growing
One of the top themes in the cryptocurrency market is the accumulation of tokens by companies into their treasuries. These firms are replicating MicroStrategy’s success as its BTC buying pushed its market capitalization to over $100 billion.
No company has started accumulating LINK tokens so far. However, Chainlink recently started an innovative solution in which it will spend its on-chain and off-chain revenue to accumulate LINK.
Data shows that the program has already bought tokens worth over $2.4 million. This approach alone will have an impact on Chainlink price at a time when whales are accumulating.
Chainlink role in DeFi and RWA
The other bullish catalyst for the Chainlink price is that it has a crucial role in the decentralized finance (DeFi) and real-world asset tokenization industry.
Chainlink secures networks valued at over $93 billion, a trend that will continue. At the same time, its cross-chain interoperable protocol (CCIP) has a strong market share in the industry. It also has partnerships with some of the biggest companies in crypto. As such, this growth will likely boost the LINK price over time.
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