A popular crypto analyst is looking at future price targets for decentralized oracle network Chainlink (LINK) heading into 2022.
In a new strategy session, Benjamin Cowen tells his 673,000 YouTube subscribers that while Chainlink’s price did increase by 113% in 2021, his expectations were much higher for the real-world data provider.
“It started around $0.12 [in 2017] and ended around $0.60. About a 5x or so. The following year down 53%, but ever since then, 521% [in 2019], 539% [in 2020]. And then this year it put in a much more modest 113% gain.
The analyst says he still believes LINK can achieve 4x gains next year.
“I do think that there is a good chance as we head into 2022, I do think LINK will put in new all-time highs.
I personally would not be surprised to see LINK go to $100 in 2022, which would represent about 4x from the current prices.
I still remain very, very bullish on Chainlink, however, you cannot discount the fact that it has underperformed [compared to] a lot of cryptocurrencies this year and over the last 18 months.”
Cowen cites the price of Chainlink against leading smart contract platform Ethereum (ETH). He says of the LINK/ETH trading pair,
“If you look at the LINK/ETH evaluation… it’s down about 87% or 88% since August of 2020.
That’s a significant drop. The valuation of LINK against ETH would have to go up about 700% just to get back to the valuation it was at in the summer of 2020.”
The chart guru says LINK/ETH breaking resistance could be the catalyst that sends Chainlink on its next rally.
“It’s been below [the bull market support band] since October or September of 2020, and we just keep getting rejected time after time.
If we break it then that could be the sign of a momentum shift for Chainlink and then potentially going off on another nice rally.”
Cowen wraps up by looking at Chainlink in US dollar terms, but remains steadfast in his assertion that LINK compared to ETH is the most important metric.
“The key areas to watch for LINK, in my opinion, to see a turnaround would, of course, be to look to see if the LINK/USD valuation can get above its own bull market support band, which ranges from around $25 to $27.
But that’s not the more important part, [which is] can the LINK/ETH valuation get on course?
LINK is fundamentally… more risky than Ethereum, so it makes sense that you’d want it to outperform Ethereum or at least be an oscillator. If all it does is bleed, then you’re taking on more risk for less reward.”
At time of writing, LINK is down 14.59% to $20.79.
The altcoin has had a rocky past month, reaching a high of $26.81 before tumbling to $17.61 and then climbing back above $24 briefly.
Chainlink started the year under $12 and reached an all-time high of $52.70 back in May, before crashing to $20.10 and ultimately $13.88 by July, before grinding its way back up in recent months.
In contrast, Ethereum has seen a breakout year, rising 422% from $730 to its current valuation of $3,811.
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