Chainlink’s LINK token has seen something of a recovery recently. Interest in the crypto has risen following a token unlock , with $117 million worth of LINK hitting the market.
The news came as $98 million worth of the token was deposited on the Binance (BNB) exchange.
However, with the token’s exchange reserve rising , this suggests that selling pressure could lead to a nasty drop.
But what is Chainlink (LINK)? How does Chainlink work? Let’s see what we can find out, and also take a look at some of the Chainlink Price Predictions that were being made as of September 18 2023.
Let’s examine some of the Chainlink price predictions being made on September 18 2023. It is crucial to bear in mind that price forecasts, particularly for a potentially volatile asset like cryptocurrency, often turn out to be inaccurate. Additionally, please remember that many long-term crypto price predictions are generated using algorithms, which means they can change at any time.
Also, keep in mind that many longer-term crypto price predictions are made using an algorithm, which means that they can change at a moment’s notice.
In terms of a short-term Chainlink price prediction, CoinCodex said LINK would get to $6.93 by September 23 and could then shoot up to $8.44 by October 18. The site’s technical analysis was neutral, with 17 indicators sending bullish signals and 12 making bearish ones.
CaptainAltCoin said LINK would go on the downturn, closing the year at $5.10. Bitnation , meanwhile, had it reach $9.74 by December. DigitalCoinPrice was super-bullish, saying LINK would reach $13.60 in 2023.
Bitnation said Chainlink would reach $22.74 in 2025, while DigitalCoinPrice argued for it trading at $21.80 that year. CaptainAltCoin was less optimistic, saying it would stand at $20.67 in two years time.
Moving on to a more long-term Chainlink price prediction, DigitalCoinPrice said the token would reach $65.93 in 2030. CaptainAltCoin thought it would be worth $51.68 that year. Bitnation’s LINK price prediction had it trade at $55.22 at the start of the next decade.
Chainlink has seen an upturn lately, although dark clouds are on the horizon. The CryptoQuant website suggested that there was selling pressure on Chainlink, caused by a growth in the token’s exchange reserve.
This news came after a token unlock saw 18.75 million LINK hit the market, most of which ended up on Binance.
Let’s now take a look at some of the highlights and lowlights of the Chainlink price history . While past performance should never be taken as an indicator of future results, knowing what the token has done can help give us some very useful context when it comes to either making or interpreting a Chainlink price prediction.
Chainlink first came onto the open market in 2017, when it was worth about $0.20. It rose above the dollar in 2019, and it spent time above $10 in 2020, closing the year at around $11.46.
In early 2021, the crypto market thrived and LINK, boosted by a new whitepaper, reached an all-time high of $52.88 on 10 May. After that, it slid back down as the market grew sluggish in the summer and, despite some upward movement from August, it closed the year at $19.59, an annual rise of more than 70%.
Despite the platform’s best efforts, things were nowhere near as good for LINK in 2022. Chainlink started well, breaking past $20 in early January, but then it basically fell throughout the year.
LINK dropped below $10 in May after the collapse of the Terra (LUNA) blockchain and fell to a low of $5.30 on 18 June. With November’s collapse of the FTX (FTT) exchange coming as a bitter blow for the whole crypto market, LINK continued to struggle.
Not even the introduction of staking could stop Chainlink from closing the year at $5.56, a year-on-year loss of about 65%.
In 2023, things initially got better. On 18 April, a buoyant market helped Chainlink reach $8.72. After that, though, it was downhill, and the slump became a crash in June.
After that, though, it recovered. In the middle of July, the market bloomed following the news that a court had ruled Ripple’s XRP was not a security if it was being sold on exchanges. LINK responded well, reaching $8.38 on July 21. It then entered a downturn, falling below $6 in the wake of Elon Musk’s SpaceX selling millions of dollars worth of Bitcoin (BTC).
There was an upturn in mid-September and, on September 18 2023, LINK was worth about $6.60.
At that time, there were about 556.8 million LINK in circulation out of a total supply of one billion. This gave the token a market cap of around $3.7 billion, making it the 19th-largest crypto by that metric.
LINK has been consolidating ever since it fell to $5 in May 2022. That price represented a significant downturn from its all-time high the previous year.
Since then, its price has been pretty horizontal, hovering between $5 and $9.
The Relative Strength Index (RSI) indicator says LINK was oversold on August 20, when the price fell 30%.
What happens next depends on whether the current upturn can be sustained.
If it is able to climb above the trendline, then we could see a new bull run soon. If it doesn’t, then we are looking at the same sort of price action we have seen since May. Even so, this may not be bad news. An upturn that takes some time to build could see even bigger gains.
It is hard to tell. The token has performed well in recent days, but there is the potential for a fall.
Chainlink has a long way to go before it reaches anything like the heights it enjoyed in early 2021. With LINK being the sort of token that, broadly speaking, follows the market, it may be some time before it does that again.
That isn’t to say that it won’t go up, but patience and realism may well be the key.
As ever with crypto, you will need to make sure you do your own research before deciding whether or not to invest in LINK.
No one can really tell right now. While the Chainlink crypto price predictions are largely positive, price predictions have a well-earned reputation for being wrong. Keep in mind, too, that prices can, and do, go down as well as up.
Before you decide whether or not to invest in Chainlink, you will have to do your own research, not only on LINK, but on other, related, coins and tokens such as Ethereum.
Either way, you will also need to make sure that you never invest more money than you can afford to lose.
In its technical documentation, or whitepaper , Chainlink says it is designed help smart contracts, computer programs that automatically execute once certain conditions are met, work better.
It says: “We foresee an increasingly expansive role for oracle networks, one in which they complement and enhance existing blockchains by providing fast, reliable and confidentiality-preserving universal connectivity and off-chain computation for smart contracts better.”
One of the key pieces of technology that helps many blockchains achieve their goals is the smart contract, a computer program that automatically executes once certain conditions are met.
Smart contracts need to access real-world date quickly and efficiently if they are going to work properly. Chainlink is a platform that help them do just that.
Based on the Ethereum (ETH) blockchain, Chainlink was founded in 2017 by crypto entrepreneur Sergey Nazarov, the system is designed to bring information to smart contracts so they can be reliable.
The platform is supported by its native token, known by the ticker handle LINK.
The Chainlink network uses computers called oracles. These are designed to bring information onto the platform and, by extension, onto smart contracts.
Every oracle on Chainlink has a reputation score. They are marked for performance and accuracy. The idea is to incentivize oracles to be accurate and reliable.
Chainlink boasts of being able to operate across blockchains, meaning it can provide smart contracts for programs that aren’t on Ethereum.
The LINK token rewards oracle owners. It can be staked, or set aside, in return for rewards. People can buy, sell, and trade it on exchanges.
Because Chainlink is based on the Ethereum blockchain, LINK is a token, not a coin. You might see references to such things as a Chainlink coin price prediction, but these things are wrong.
On September 18 2023, there were about 556.8 million LINK in circulation out of a total supply of one billion.
It could, but not for some time. DigitalCoinPrice thinks LINK will reach three figures in 2032, while CaptainAltCoin says it will reach $100 by 2040.
Keep in mind that Chainlink has never traded at $100. Its highest ever price, $52.88, came in May 2021.
LINK rewards people who operate oracles on the Chainlink crypto platform. It can also be staked in return for rewards. People can buy, sell, and trade it on exchanges.
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Please note that the contents of this article are not financial or investing advice. The information provided in this article is the author’s opinion only and should not be considered as offering trading or investing recommendations. We do not make any warranties about the completeness, reliability and accuracy of this information. The cryptocurrency market suffers from high volatility and occasional arbitrary movements. Any investor, trader, or regular crypto users should research multiple viewpoints and be familiar with all local regulations before committing to an investment.