- Chainlink (LINK) appears to be recovering from the deep level of consolidation as it stages a mini rally in an attempt to secure its existing yearly high.
- An analyst has predicted that LINK could outshine Ethereum’s market cap as its blockchain surpasses that of Solana and other competitors.
Chainlink (LINK) shows signs of recovery as it makes a decisive run of 14.9% on its weekly price chart to extend the 90-day gain to 117%. At press time, the asset was trading at $24.1 with a market cap of $15.3 billion.
On-Chain Analysis
Assessing the reasons behind this rebound, we observed that LINK is reacting to the rising broad market demand ahead of the inauguration of US President-elect Donald Trump. Meanwhile, its on-chain data shows that whales are aggressively accumulating the asset. According to analyst Ali Martinez, a whale wallet recently purchased 1.40 million LINK tokens, underscoring the growing confidence in the market.
Whales have bought over 1.40 million #Chainlink $LINK in the last 96 hours! pic.twitter.com/ixnXYD2CM0— Ali (@ali_charts) January 5, 2025
A little over a week ago, Santiment data highlighted that wallet addresses holding between 1 million to 10 million LINK had accumulated 3.58 million tokens ($76.9 million at that time) within three days. Conversely, retail investors have sold 5.67 million LINK in the last two months.
Analyzing the current price behavior of the asset, we discovered that LINK has been trading within a tight range of $23 and $24. From the beginning of 2025, it consolidated twice on its 4-hour chart before starting the ongoing mini-rally. The asset has also shown a potential shift in the uptrend as it moves above the 200 Exponential Moving Average (EMA) and closes above it.
Four days ago, renowned crypto analyst Michaël van de Poppe disclosed that an uptrend has begun for LINK. At that time, LINK was trading at $20.
It’s now searching for a higher low. However, the valuation of Chainlink against Bitcoin is still super low. I expect a lot of upside to come for LINK in 2025.
How High Can the Price of Chainlink (LINK) Rise
Late last year, an analyst called Sam disclosed that Chainlink would eclipse Ethereum (ETH) by the end of the bull cycle. It is important to note that the market capitalization of Ethereum is currently $442 billion, while that of Chainlink stands at $15.21 billion. His reason is that the incredible features of the Chainlink blockchain outshine those of Solana (SOL), Ethereum, and Avalanche (AVAX).
Justifying the market cap of Ethereum, the analyst explained that the asset has a first-mover advantage in the Decentralized Finance (DeFi) ecosystem. Even so, Chainlink has a security layer that seamlessly connects it all.
As of November 2024, the DeFi protocol was securing more than $31 billion worth of assets and more than $34 billion in transaction Volume. This implies that the LINK price is highly undervalued and could explode to $600 with time.
Hitting the all-time high market cap of Ethereum would position the asset at $632. Fascinatingly, this is achievable as it surged by 3,709% in 2020. Repeating the same level of growth would push the asset and would likely create a better avenue to hit $1000, according to analysts.
